Chapter 13 and 16 Gov’t Test

question

Which of the following statements regarding the role of the federal government in the economy is correct?
answer

Presidential election outcomes are heavily influenced by the health of the economy.
question

The main goal of fiscal policy is________
answer

To use taxes and government spending to help stimulate or slow down economic growth.
question

What is a government program called that provides benefits only to individuals who qualify based on specific needs?
answer

A means-tested program
question

How does American social welfare policy compare to that of other established democracies?
answer

Americans have a much lower tax rate than most democratic nations, and social welfare benefits are consequently not as generous in the US
question

Keynesian economic policy holds which of the following to be true?
answer

The key task for fiscal policy is to stimulate the supply of goods
question

Who is responsible for making monetary?
answer

The Federal Reserve
question

A ___ tax is one by which the government takes a greater share of income of the rich than of the poor.
answer

Progressive
question

What is the source for the money in the Social Security Trust Fund?
answer

Payroll Taxes
question

Laissez-Faire economics holds which of the following to be true?
answer

The government should not take an active role in the economy
question

The underemployment rate is best understood as _____________
answer

The percentage of Americans seeking working who are unable to find it
question

An economic theory holding that the supply of money is the key to a nations economic health and that too much cash and credit in circulation produces inflation is called_____.
answer

Monetarism
question

Inflation is best understood as the rate at which __________.
answer

Prices for goods and services increase
question

What did the welfare reform law of 1996 implement?
answer

Temporary Assistance for Needy Families
question

If the Federal Reserve wanted to slow the rate of economic growth, it would most likely____.
answer

Increase interest rates
question

What is the long-term concern about the Social Security Trust Fund?
answer

There will be too few workers contributing to support the increasing number of retirees.
question

Which is the largest social policy of the federal government?
answer

Social Security
question

What is the purpose of continuing resolutions?
answer

They allow agencies to spend at the level of the previous year.
question

A budget deficit is when _____ exceed(s) revenues in a fiscal year.
answer

expenditures
question

Which of the following budgetary process actors foes the president oversee?
answer

Office of Management and Budget
question

Which of the following investors hold the majority of the federal governments public debt?
answer

Foreign investors
question

The national debt is____ of debt over time.
answer

Accumulation
question

The ______Amendment permits congress to levy income taxes.
answer

Sixteenth
question

Which one of the presidents listed below had Committees and the Congressional Budget Office?
answer

To advise Congress on consequences of its budget decisions.
question

A(n)______is an act of Congress that establishes or changes a government program.
answer

Authorization bill
question

Which of the following is the biggest threat to Social Security?
answer

Mandated health insurance
question

Who pays income taxes?
answer

Corporations and individuals
question

The Social Security Act was passed in the year___.
answer

1935
question

Who benefits most from the military industrial complex?
answer

Defense Contractors
question

A balanced budget occurs when the ____ and the surplus equal zero.
answer

Deficit
question

Why did the United States keep a large permanent military after World War II?
answer

The Cold War began at the end of World War II
question

Which one of the presidents listed below had low budget deficits during his presidency?
answer

Bill Clinton

Get instant access to
all materials

Become a Member