PLS Chapter 13 – Flashcards

Which of the following is an advantage of deregulation? Deregulation would decrease the inflationary pressures in the economy. Deregulation would increase the cost of economic activity. Deregulation would increase the need for businesses to hire attorneys. Deregulation would reduce compliance costs for business. Deregulation would strengthen American labor unions.

Advocates of aggressive monetary policy contend that the key factor affecting the economy's performance is __________. the federal funds rate the GDP inflation the money supply tax expenditures

In an economic slowdown, Keynesian economic policy would advocate __________. decreasing inflation increasing government spending increasing the money supply increasing the unemployment rate raising interest rates

In general, a recession does which of these? generates a response by state governments generates a response by the federal government lasts at least a year leads to higher inflation reduces the unemployment level

Which of these is most consistent with the philosophy of Keynesianism? interest rate increases by the Federal Reserve government actions to increase debt owned by foreign countries government decisions to increase the money supply government provision of the 2008 federal stimulus package deregulation efforts of President Reagan in the 1980s

What is the purpose of government regulation of the economy? to increase the revenue collected by the federal government to increase the overall level of taxes paid by produces in the economy to increase the level of profits for multinational corporations to minimize the costs of doing business for corporations to minimize abuses and promote competition

One business practice that has threatened the long-term U.S. economy is __________. collective bargaining compliance funding corporate giving offshore outsourcing protectionism

Which of the following provides the greatest source of revenue for the federal government? individual income taxes Medicaid taxes regressive taxes Social Security taxes taxes on cigarettes

Which description best defines the social safety net? government responses to continuing social problems active government intervention based on public demand government programs to prevent homelessness and hunger government responses to crime and terrorism government assistance during economic downturns

A government policy that attempts to manage the economy by controlling the amount of money in circulation through interest rates is called __________. deregulation fiscal policy monetary policy protectionism stagflation

What do economists use gross domestic product to measure? the rate of government spending in the economy the rate of tariffs applied to goods imported into the United States the total impact of import revenues on the domestic economy the total value added by government expenditures in the economy the total value of goods and services produced in the economy

Which of the following is most accurate regarding the future of Social Security? Social Security will likely need adjustments to meet future demands. Social Security is expected to run out of money by 2014. Social Security is expected to be financially stable for the next 50 years. Social Security is expected to be financially stable for the next 100 years. Social Security will be replaced by a private investment program beginning in 2015.

Which of the following would be considered a regulatory policy? a social insurance policy a food safety policy a monetary policy a redistributive policy a federal stimulus policy

Compared to other nations such as Russia and Sweden, the United States has __________ than many of its competitors. a higher GDP fewer rules higher taxes lower interest rates more regulation

Which of the following is one way that the federal government seeks to promote economic growth? boosting the trade deficit enforcing the value-added tax imposing compliance costs offering subsidies outlawing labor injunctions

U.S. monetary policy involves which of the following? import and export policies interest rates and the money supply supply-side economics NAFTA and the balance of trade with Canada the national debt and the annual deficit

Which of the following philosophical beliefs explains the federal government's comparatively limited role in welfare and health policies? a commitment to egalitarianism a commitment to rugged individualism a commitment to communitarianism a commitment to public assistance a commitment to social safety nets

Inflation is best understood as the rate at which __________. gross domestic product expands prices for goods and services decrease prices for goods and services increase the federal government increases taxes to raise revenue the Federal Reserve Board expands the money supply

Entitlement programs are designed to do which of the following? get the poor out of poverty help ensure equality in public school funding help provide income to low-earning households provide financial aid to poor college students provide benefits to all qualifying individuals

Which of the following entities is responsible for setting the federal funds rate in the United States? the Congress the Congressional Budget Office the Executive Office of the President the Federal Reserve Board the Office of Management and Budget

Given historical trends, which of these is most likely to happen in the near future? deep reductions in military spending elimination of social insurance programs increased regulation of the economy large reductions in the national debt massive reductions in entitlement spending

According to Figure 13.3, where does most of the federal budget go? foreign aid human resources interest on the national debt national defense monetary policy

Regulatory legislation at the start of the twentieth century primarily dealt with __________. business monopolies education labor unions technology the environment

A government policy that attempts to manage the economy by controlling taxing and spending is called __________. deregulation fiscal policy monetary policy protectionism regulation

Worries about international competition often lead domestic producers to call for __________. anti-trust legislation an international trade injunction a monopoly protectionism a value-added tax

In enacting three new education programs in 1998 to help students finish high school, to provide funding for distance learning, and to improve teacher quality, what important fact did Congress acknowledge? The Constitution requires the government to ensure adequate education at all levels. Education interest groups and teachers' unions have become too powerful to ignore. There is a link between quality of primary and elementary education and college success. Students are dropping out of school because the quality of teaching is poor. Many rural students do not have access to adequate schools and good teachers.

If a government wanted to use monetary policy to increase economic growth, which of the following steps should be taken? Decrease interest rates to increase the amount of money in supply. Increase the amount of foreign currency kept on reserve in U.S. banks. Increase the amount of public revenue for investment by raising taxes. Increase the government spending on public works projects. Print a larger amount of money to increase the money supply.

If the Federal Reserve Board needed to slow the economy down, it would most likely __________. lower interest rates to increase the money supply lower taxes to increase the level of employment increase government spending to increase the money supply. raise interest rates to decrease the money supply. raise taxes to increase the money supply.

What is the purpose of deregulation in the American political economy? Deregulation seeks to increase the barriers to economic productivity. Deregulation seeks to increase the political power of labor unions. Deregulation seeks to increase the power of large economic monopolies. Deregulation seeks to remove inefficient barriers in the collection of taxes. Deregulation seeks to remove inefficient barriers to productivity and growth.

The __________ provides an international forum for reaching trade agreements and resolving disputes among its members. GATT NAFTA SEC VAT WTO

What is the main purpose of monetary policy? to affect how much money is available to businesses and banks to control the amount of public debt sold to foreign states to control the interest rates on money lent to foreign states to equalize income disparity among citizens of the United States to expand the government's revenue base so as to reduce the deficit

Which of the following is an example of corporate social responsibility? antitrust legislation boycotting a product that is dangerous to the environment collective bargaining encouraging employees to volunteer by giving them extra days of paid leave issuing an environmental impact statement

Which of the following is true with respect to Keynesian economic policy? Keynesian economic policy relies on government taxes and adjustments to the money supply to control inflation and unemployment. Keynesian economic policy relies on taxation and expenditures by government to control unemployment. Keynesian economic policy uses the money supply to control inflation and unemployment. Keynesian economic policy can only be used by the federal government. Keynesian economic policy can only be used by state-level governments.