question

Which of these is not one of the stages of the policymaking process? a. evaluation b. implementation c. formulation d. agenda setting e. discrimination

answer

discrimination.

question

The public assistance program designed to provide health care for poor Americans, funded by both the states and federal government, is called a. Social Security. b. CHIP. c. Medicare. d. TANF. e. Medicaid.

answer

Medicaid

question

Which of the following policies involves more state spending than federal spending? a. Veterans affairs b. Social security c. Education * d. Medicare e. Military policy

answer

Education

question

Which of the following stages comes first in the policy-making process? a. Program evaluation b. Implementation c. Policy formulation d. Legitimation e. Agenda setting

answer

Agenda setting.

question

An example of a discretionary item in the federal budget is a. liquidation of prior obligations b. spending on national parks c. interest on the public debt d. veterans' pensions e. Social Security payments

answer

spending on national parks.

question

Reserve Requirements stipulate the amount of ______ that banks must hold in reserve. a. precious metals b. foreign currencies c. taxes d. deposits e. none of the above

answer

deposits

question

One implication of Keynesian economic theory is that a. the government could be a positive force in weathering economic ups and downs. b. the only thing we have to fear is fear itself. c. the government that governs least, governs best. d. the government always gets in the way of economic progress. e. the government should stimulate the supply of goods, not their demand.

answer

the government could be a positive force in weathering economic ups and downs..

question

The ________, passed by Congress in 1935, dramatically brought the government into the equation of one generation's obligations to another. a. National Direct Student Loan Act b. Aid to Families with Dependent Children Act c. Medicare bill d. Social Security Act e. Medicaid bill

answer

Social Security Act.

question

Which of the following about fiscal policy is correct? a. Raising taxes and decreasing spending should reduce inflation. b. It just involves spending and borrowing. c. Cutting taxes and increasing spending should decrease employment. d. Raising taxes and decreasing spending should expand the economy. e. Cutting taxes and increasing spending should contract the economy.

answer

Raising taxes and decreasing spending should reduce inflation..

question

A tax whereby poor citizens pay a higher percentage of their incomes compared with wealthier citizens is known as a a. regressive tax b. progressive tax c. flat tax d. proportional tax e. graduated income tax

answer

regressive tax.

question

In 1965, ______--the most extensive health coverage legislation in American history--became law. a. Medicare b. the Elementary and Secondary Education Act c. Social Security d. the Federal Drug Administration e. the Head Start Program

answer

Medicare

question

In order to insulate the Fed from political pressure, a. its members cannot be members of either the Democratic or the Republican Party. b. the Congress, and not the president, has the power to appoint members. c. its members are selected by a nonpartisan commission. d. its members serve 14-year terms. e. the Congress has no role in appointing its members.

answer

its members serve 14-year terms.

question

______ is a program added to the Social Security system in 1965 that provides hospitalization insurance for the elderly and permits them to purchase inexpensive coverage for doctor fees and other medical expenses. a. SSI b. AARP c. AFDC d. Medicaid e. Medicare

answer

Medicare

question

The Sherman Act of 1890 was designed to a. raise tariffs on foreign goods. b. allow workers to form unions. c. ensure competition and prevent corporate monopolies. d. keep oil prices cheap. e. promote international free trade

answer

ensure competition and prevent corporate monopolies

question

America's first antitrust legislation, which was passed in the late nineteenth century, was the a. Clayton Antitrust Act. b. Sherman Act. c. Taft-Hartley Act. d. Antimonopoly Act. e. Wagner Act.

answer

Sherman Act.

question

Which of the following is NOT influenced in a major way by the actions of the Fed? a. Money supply b. The minimum wage c. Bank interest rates d. The unemployment rate e. Inflation

answer

The minimum wage.

question

Who is largely responsible for preparing the president's budget and for establishing the budgets of federal agencies? a. Secretary of the Treasury b. Council of Economic Advisors c. Economic Recovery Advisory Board d. National Economic Council e. Office of Management and Budget

answer

Office of Management and Budget.

question

The impact of the federal budget—taxes, spending, and borrowing—on the economy describes a. monetary policy. b. budgetary policy. c. fiscal policy. d. trade policy. e. economic policy.

answer

fiscal policy..

question

One of the chief tasks of the Bureau of Labor Statistics is to a. measure unemployment. b. regulate trade. c. set the exchange rate for U.S. currency. d. declare the U.S. economy is in recession. e. oversee the implementation of tax policy.

answer

measure unemployment

question

Which of the following is NOT true of the Wagner Act? a. None of these; all are true of the Wagner Act. b. It gave states the power to adopt right-to-work laws. c. It stated that the right of workers to collective bargaining was guaranteed. d. It prevented employers from firing or discriminating against a worker who advocates unionization. e. It represented a significant change in government policy toward unions.

answer

It gave states the power to adopt right-to-work laws.

question

Medicare was adopted in 1965 to provide government health insurance to a. children living in poverty. b. veterans. c. the poor. d. the elderly. e. government employees.

answer

the elderly..

question

Proponents of supply-side economics argue that a. raising tax rates stimulates the supply of goods. b. the more government taxes, the greater total revenue production. c. government spending stimulates the supply of goods. d. the more government taxes, the more people work. e. lowering tax rates stimulates the supply of goods.

answer

raising tax rates stimulates the supply of goods.

question

When the Federal Reserve Board slashed interest rates and committed trillions of dollars to prevent the failure of major financial institutions, this was known as the ______. a. Armageddon b. last gasp c. great miracle d. bailout e. Newer Deal

answer

bailout

question

Prior to the 1960s, ______ policy had been the domain of state and local governments. a. banking b. war c. trade d. foreign e. education

answer

education

question

Medicare is a. compulsory. b. part of the Social Security system. c. provided by the states. d. entirely voluntary. e. the name of America's national health insurance program.

answer

part of the Social Security system..

question

Monetary policy is directly regulated by a. the Treasury Department. b. the United States Mint. c. the president of the United States. d. the Federal Reserve System. e. the Department of Commerce.

answer

the Federal Reserve System..

question

Antitrust policy is designed to a. regulate the money supply. b. ensure free markets and prevent government intervention in the economy. c. control inflation. d. regulate interest rates. e. ensure competition and prevent monopolies.

answer

ensure competition and prevent monopolies.

question

What organization regulates international trade? a. The World Trade Organization b. The Federal Trade Commission c. The International Monetary Fund d. The Federal Open Market Committee e. The Securities and Exchange Commission

answer

The World Trade Organization.

question

The primary responsibility for determining monetary policy in the United States rests with the a. Board of Governors of the Federal Reserve System b. International Monetary Fund c. Comptroller of the Currency d. Treasury Department e. World Bank

answer

Board of Governors of the Federal Reserve System.

question

The official unemployment rate underestimates unemployment because it leaves out a. students. b. the high-tech sector. c. discouraged workers. d. housewives. e. the homeless.

answer

discouraged workers.

question

A ________ tax requires the same share from everyone, rich and poor alike. a. proportional b. relative-deprivation c. flat d. progressive e. regressive

answer

proportional

question

Policy ______ involves assessing policies' effectiveness, which can be complicated. a. integration b. addition c. discretion d. multiplication e. evaluation

answer

evaluation

question

A ________ tax takes a higher percentage from the incomes of the rich than the poor. a. regressive b. progressive c. flat d. relative-deprivation e. proportional

answer

progressive

question

Government control over money supply is known as a. money supply policy. b. fiscal policy. c. monetary policy. d. revenue policy. e. economic policy.

answer

monetary policy..

question

When must the budget be submitted to Congress by the President? a. December 25 b. February 1 c. May 5 d. July 4 e. October 31

answer

February 1.

question

The consumer price index measures a. the change in the amount of taxes paid by individuals. b. the change in income, controlling for periods of unemployment. c. the change in the cost of buying a fixed basket of goods and services. d. the change in the prime lending rate. e. the change in what various incomes can buy.

answer

the change in the cost of buying a fixed basket of goods and services..

question

How is Medicaid funded? a. Through taxes on employers b. Through payroll taxes on employees and employers c. By premiums paid by beneficiaries d. Through general federal revenue e. Through federal grants to state health programs

answer

Through federal grants to state health programs.

question

A tax by which the government takes 50 percent of a rich family's income in taxes and 5 percent of a poor family's income in taxes is a _____ tax. a. proportional b. flat c. progressive d. unitary e. regressive

answer

progressive

question

The principle that government should not meddle in the economy is called a. laissez-faire. b. liberalism. c. monetarism. d. conservatism. e. capitalism.

answer

laissez-faire.

question

When President Bush pursued policies making it easier for ______ to buy their homes, this led to a surge in the number of sub-prime mortgages. a. minority Americans b. people with high income c. people with good credit d. Congress members e. the wealthiest Americans

answer

minority Americans

question

The economic theory that argues that government can spend its way out of an economic depression is best associated with a. Alexander Hamilton b. Arthur Laffer c. George W. Bush d. John Maynard Keynes e. Alan Greenspan

answer

John Maynard Keynes.

question

The manipulation of the supply of money and credit in private hands to promote economic health is known as a. Keynesianism. b. supply-side economics. c. fiscal policy. d. monetary policy. e. socialism.

answer

monetary policy

question

Which of the following forms of financial aid from the national government gives the states the broadest discretion in the spending of money? a. Unfunded mandates b. Block grants c. Categorical grants-in-aid d. Military funding e. Foreign aid

answer

Block grants.

question

Most Americans gain access to health care through a. government-funded health insurance. b. Medicare. c. private health insurance plans. d. Nowhere; most Americans do not have health insurance. e. Medicaid.

answer

private health insurance plans..

question

Organizations contracted by individuals or insurance companies to provide care for a yearly fee, and that limit the choice of doctors and treatments, are called a. health maintenance organizations. b. Medicare programs. c. All of these are correct d. government insurance providers. e. Medicaid programs.

answer

health maintenance organizations..

question

Fiscal policy refers to a. federal taxing, spending, and borrowing. b. the setting of interest rates. c. None of these are true. d. the creation of jobs. e. the printing of money.

answer

federal taxing, spending, and borrowing..

question

The program that provides hospitalization insurance for elderly Americans is ___________; the program that provides public assistance for health care for poor Americans is _________. a. Medicaid Part A; Medicaid Part B b. Medicare Part A; Medicare Part B c. Medicare; Medicaid d. Social Security; Medicaid e. CHIP; Medicare

answer

Medicare; Medicaid.

question

The political parties emphasize different economic issues; Democrats tend to focus on ___________, while Republicans are more worried about ___________. a. domestic trade; international trade b. sociotropic voting; pocketbook voting c. inflation; keeping unemployment low d. pocketbook voting; sociotropic voting e. keeping unemployment low; inflation

answer

keeping unemployment low; inflation.

question

The agenda-setting function of the media refers to the power to a. favor the position of one interest group over another b. decide which issues are important enough to bring to public attention c. counter the censorship activities of media watch groups d. endorse specific candidates for political office e. mobilize economic interests in favor of a particular candidate

answer

decide which issues are important enough to bring to public attention.

question

Which of the following has authority over the printing of currency? a. The Office of Management and Budget b. The Council of Economic Advisors c. The House Appropriations Committee d. The Department of the Treasury e. The Federal Reserve Board

answer

The Department of the Treasury.

question

Laissez-faire refers to a. the economic philosophy that the state should promote industrial development. b. the policies adopted in response to the Great Depression. c. the economic principle that the government should not meddle with the economy. d. the economic principle that the state should have a hand in steering the economy. e. the economic principle that the state should regulate trade.

answer

the economic principle that the government should not meddle with the economy..

question

Organizations contracted by individuals or insurance companies to provide health care for a yearly fee are called a. hospitals. b. physician associations. c. cooperative health networks. d. health clinics. e. health maintenance organizations.

answer

health maintenance organizations..

question

Monetary policy refers to a. manipulation of the supply of money in private hands. b. manipulation of the supply of credit in private hands. c. Monetary policy refers to none of the above. d. Monetary policy refers to all of the above. e. control over the supply of money.

answer

Monetary policy refers to all of the above..

question

The change in the cost of buying a fixed basket of goods and services and the key measure of inflation is the a. consumer price index. b. minimum wage. c. U.S. Census Bureau. d. underemployment rate. e. gross national product.

answer

consumer price index..

question

Food stamps and Medicaid are a. means-tested programs. b. government guarantees. c. rights of citizenship. d. non-means-tested programs. e. entitlements.

answer

means-tested programs..

question

The Social Security Act was passed in the United States during a. World War I. b. the Great Society era. c. the Spanish American War. d. the New Deal. e. the Civil War.

answer

the New Deal.

question

In order to avoid an economic depression, Keynesian economic theory argues that government policies should a. reduce demand. b. lower taxes. c. raise interest rates. d. increase supply. e. spend more.

answer

spend more..

question

Government benefits provided regardless of financial need are called a. means tested. b. transfer payments. c. entitlements. d. generic expenditures. e. nonmerit benefits.

answer

entitlements

question

The main agency for making monetary policy is the a. Council of Economic Advisors. b. Congressional Budget Office. c. Federal Reserve Board. d. United States Treasury. e. Office of Management and Budget.

answer

Federal Reserve Board.

question

The three points of an iron triangle include a. an independent agency, a state, and a member of Congress b. a cabinet department, an interest group, and the House majority leader c. the Executive Office of the President, an interest group, and a Senate committee d. an administrative agency, an interest group, and a congressional committee e. a regulatory commission, a corporation, and the White House Office

answer

an administrative agency, an interest group, and a congressional committee.

question

An example of an entitlement program is a. food stamps. b. Medicaid. c. All of these are entitlement programs. d. Medicare. e. federal student loans.

answer

Medicare

question

Social welfare policies are a. policies that provide benefits to individuals, either through entitlements or through means testing. b. policies used to count the number of poor people. c. "shares" of national income earned by various groups. d. policies that tax a greater share of the income of the rich than of the poor. e. benefits given by the government directly to individuals.

answer

policies that provide benefits to individuals, either through entitlements or through means testing.

question

Nearly two-thirds of the budget's expenditures go to entitlements, which are obligations the government has incurred and must pay. These include all of the following except: a. veterans benefits b. Medicare c. Social Security d. interest payments on the national debt e. discretionary funds

answer

discretionary funds.

question

Which of the following committees plays a major role in the House in shaping tax policy? a. Finance b. Commerce c. Appropriations d. Governmental Affairs e. Ways and Means

answer

Ways and Means.

question

Unemployed workers who have given up their search for a new job are known as a. the underclass. b. welfare recipients. c. unemployable workers. d. lazy. e. discouraged workers.

answer

discouraged workers.

question

All of the following are examples of a linkage institution influencing the policy process EXCEPT a. an exposé by the national media on the housing crisis b. the Republican Party pursuing a balanced budget amendment c. the outcome of a congressional election d. the president delivering the State of the Union speech e. the Sierra Club lobbying the Environmental Protection Agency

answer

the president delivering the State of the Union speech.

question

Keynesian economic theory argues for a. lower taxes to stimulate economic growth. b. higher tariffs to limit imports. c. stimulating the economy through government spending programs. d. keeping the government's hands off the economy. e. government policies designed to control inflation.

answer

stimulating the economy through government spending programs..

question

The federal income tax is an example of a ________ tax. a. flat b. progressive c. relative-deprivation d. proportional e. regressive

answer

progressive

question

Fiscal policies refer to the government's power to a. reapportion congressional seats b. regulate specific industries c. enforce treaties d. control the supply of money e. tax and spend

answer

tax and spend.

question

Inflation is more likely to be a concern of a. members of the House of Representatives. b. incumbents. c. liberals. d. Republicans. e. Democrats.

answer

Republicans

question

President George W. Bush had a proposal to "save" Social Security through which method? a. elimination of Social Security b. adding money to the Social Security Trust Fund c. none of these answers d. privatization e. raising taxes

answer

privatization

question

Worker safety is governed by the rules promoted and enforced by the a. National Labor Relations Board. b. Securities and Exchange Commission. c. Occupational Health and Safety Administration. d. Federal Trade Commission. e. American Federation of Labor.

answer

Occupational Health and Safety Administration..

question

A worker who has lost his or her job, has been unable to find a new job, and has given up the search for a new job is known as a. a discouraged worker. b. an unemployed worker. c. an underemployed worker. d. a charity case. e. unemployable.

answer

a discouraged worker..

question

Which of the following was NOT a major component of President Barack Obama's comprehensive health care reform priorities? a. Increasing access to health care and containing health care costs b. Ending discrimination by health insurance companies against people with preexisting conditions c. Capping out-of-pocket expenses for the insured d. Establishing panels of experts that would judge the costs and benefits of expensive health care procedures and surgeries before granting permission for patients to receive them e. Eliminating extra charges for preventive care

answer

Establishing panels of experts that would judge the costs and benefits of expensive health care procedures and surgeries before granting permission for patients to receive them.

question

On economic policy, Democrats are said to appeal more to which types of voters? a. Investment bankers and business professionals b. The working class and union households c. Soccer moms and NASCAR dads d. The economic policies of Democrats have no appeal. e. Young urban professionals

answer

The working class and union households.

question

Which group is more affected by unemployment? a. Republicans b. Older adults c. Democrats d. Hard-working whites e. Young adults

answer

Young adults.

question

A supporter of laissez-faire theory would oppose a. supply-side economics. b. strict separation between government and business. c. reducing government subsidies to failing businesses. d. reducing government regulations. e. governmental intervention in the economy.

answer

governmental intervention in the economy..

question

Which of the following is funded through payroll taxes on employers and employees? a. All of these are funded through payroll taxes. b. Family and Medical Leave Act c. Social Security d. Supplementary Security Income (SSI) e. Children's Health Insurance Program (CHIPs)

answer

Social Security.

question

The name of the program that replaced Aid to Families with Dependent Children as the program for public assistance to needy families is called a. Temporary Assistance for Needy Families. b. Supplemental Security Income. c. Social Security. d. Medicaid. e. Medicare.

answer

Temporary Assistance for Needy Families..

question

Keeping unemployment low is more likely to be a concern of a. members of the House of Representatives. b. conservatives. c. Republicans. d. incumbents. e. Democrats.

answer

Democrats

question

Our key measure of inflation is called the a. national inflation index. b. gross national product. c. consumer price index. d. stock market. e. Laffer curve.

answer

consumer price index..

question

What happened after the stock market collapsed in 2008? a. Unemployment dropped to its lowest level in U.S. history. b. People's retirement accounts steadily rose in value. c. The credit market prospered. d. Fannie Mae and Freddie Mac saw huge profits from the sub-prime mortgages. e. There was a drastic fall in the demand for construction, goods and services.

answer

There was a drastic fall in the demand for construction, goods and services..

question

The nation's unemployment rate is determined by a. randomly selected payroll audits by the Federal Reserve Board. b. a monthly random survey of the population. c. tracking of media coverage of job cuts. d. monthly changes in income tax withholding monitored by the IRS. e. monthly unemployment claims made in each state.

answer

a monthly random survey of the population..

question

The primary tools used to steer the economy are a. All of these are true. b. domestic policy and foreign policy. c. free trade and tariff policies. d. monetary policy and fiscal policy. e. inflation and regulation of the stock exchange.

answer

monetary policy and fiscal policy.

question

The president needs congressional consent on all ______. a. personal decisions b. all of these answers c. vacations d. taxes e. federal expenditures

answer

taxes

question

The Federal Reserve Board is intended to be a. half Democrat and half Republican. b. formally under the control of the president. c. formally under the control of Congress. d. replaced by each new president. e. independent of partisan politics.

answer

independent of partisan politics..

question

Which of the following is one of the measures used by the Fed to control the money supply? a. It sets discount rates for the money that banks can borrow from the Federal Reserve. b. It sets reserve requirements that determine the amount of money that banks must keep in reserve at all times. c. It dictates the federal funds rate and sells and purchases government bonds. d. None of these; the Fed cannot control the money supply. e. It can buy and sell government securities in the market, thereby either expanding or contracting money supply.

answer

It dictates the federal funds rate and sells and purchases government bonds..

question

One of the main economic concerns of American policymakers is inflation, which refers to a. the amount of tax increases from year to year. b. reduced oil consumption resulting from the level of air in car tires. c. the level of debt held by foreign countries. d. the drop in prices for consumer goods. e. the rise in prices for consumer goods.

answer

the rise in prices for consumer goods..

question

Economic policy that shields an economy from imports is known as a. Marxism. b. Keynesianism. c. protectionism. d. isolationism. e. supply-side economics.

answer

protectionism

question

Republicans, including President George W. Bush, proposed solving the Social Security problem by a. cutting benefits. b. diversifying a portion of Social Security contributions to private retirement funds. c. diverting a portion of Social Security funds to offset Medicare and Medicaid costs. d. raising taxes. e. abolishing the program.

answer

diversifying a portion of Social Security contributions to private retirement funds.

question

Which of these is not true regarding the legislation signed by President Obama in 2010 imposing new regulations on the financial industry? a. It set up a Bureau of Consumer Financial Protection. b. It curbed commercial banks' ability to conduct proprietary trading. c. It allowed the Securities and Exchange Commission to oversee private equity and hedge funds. d. It was the result of detailed negotiations and compromises. e. It was strongly supported by Republicans and the financial industry.

answer

It was strongly supported by Republicans and the financial industry

question

The sales tax is an example of a(n)________ tax. a. progressive b. unitary c. earned-income d. regressive e. proportional

answer

regressive

question

The Securities and Exchange Commission was created in order to a. regulate prices. b. promote free trade. c. investigate stock fraud. d. protect consumer interests. e. investigate tax fraud.

answer

investigate stock fraud..

question

Wal-Mart is an example of a multinational corporation because a. it accounted for 12 percent of U.S. productivity growth during the 1990s. b. it sells many goods made in China. c. it is the world's largest company. d. it has the lowest prices around. e. it has vast holdings in many countries.

answer

it has vast holdings in many countries..

question

Given the failure of the economic system to provide enough jobs at a living wage, people are not always to blame for needing public assistance, also called ______. a. welfare b. foreclosures c. liabilities d. penalties e. taxes

answer

welfare

question

The increase in the cost of a barrel of oil from $10.00 in the 1990s to over $117.00 in 2008 is an example of a. price gauging. b. inflation. c. cost-of-living adjustment. d. OPEC price manipulation. e. American foreign policy.

answer

inflation

question

Diversity of public policy throughout the United States is primarily a consequence of a. innovation within bureaucratic agencies b. decentralization in the Senate c. lack of party discipline in the House d. federalism e. separation of powers

answer

federalism

question

________ is a state and federal partnership that targets uninsured children and pregnant women in families with incomes too high to quality for most state Medicaid programs but, often, too low to afford private coverage. a. Medicare b. Medicaid c. CHIP d. WIC e. TANF

answer

CHIP

question

Who measures how many and what types of workers are unemployed? a. The Federal Reserve System b. The Bureau of Labor Statistics c. The Campus Living Wage Project d. The Securities and Exchange Commission e. The Occupational Health and Safety Administration

answer

The Bureau of Labor Statistics.

question

On economic policy, Republicans are said to appeal more to which types of voters? a. There is no real voter support for Republican economic policies. b. Retirees c. Students and young adults d. Union members and the working class e. Business owners, managers, and professional people

answer

Business owners, managers, and professional people.

question

Inflation refers to a. the value of the U.S. dollar compared to other countries' currencies. b. the number of jobs created in a year. c. the decline in the price for consumer goods. d. the availability of credit. e. the rise in the price for consumer goods.

answer

the rise in the price for consumer goods..

question

The United States' economic system has led to vast economic ______. For instance, the top 300,000 earners receive almost as much income as the bottom 150 million. a. all of the above b. conformity c. inequality d. unanimity e. bias

answer

inequality

question

Who is responsible for monetary policy? a. Federal Reserve Board b. Electoral College c. Pentagon d. Department of the Interior e. CIA

answer

Federal Reserve Board.

question

A tax whereby poor citizens pay a higher percentage of their incomes compared with wealthier citizens is known as a a. progressive tax b. graduated income tax c. proportional tax d. flat tax e. regressive tax

answer

regressive tax.

question

The United States has a ______ economic system. This encourages individual enterprise, a free market, and relatively low taxation. a. communistic b. socialist c. planned d. barter e. capitalistic

answer

capitalistic

question

Government benefits that certain qualified individuals are entitled to by law, regardless of need, are called a. regulatory policies. b. entitlements. c. redistributive policies. d. handouts. e. means-tested programs.

answer

entitlements

question

Alan Greenspan and Ben Bernanke have both served as a. chairmen of the Securities and Exchange Commission. b. presidents of the American Federation of Labor. c. secretaries of the treasury. d. economics professors at Princeton University. e. chairmen of the Federal Reserve Board.

answer

chairmen of the Federal Reserve Board..

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