Question 1

The first tax cut designed to stimulate the economy and promote full employment was enacted by President

Accepted Answer

A)  Lyndon B.Johnson.
B)  Theodore Roosevelt.
C)  Franklin D.Roosevelt.
D)  John F.Kennedy.

Question 2

The idea that the government can stimulate a slow economy by increasing public spending or cutting taxes is called

Accepted Answer

A)  laissez-faire economics.
B)  Keynesianism.
C)  social democracy.
D)  monetarism.

Question 3

Inflation reached historically ________ levels during the late 1970s, ________ ever since.

Accepted Answer

A)  high; but declined by the mid-1980s and has remained low
B)  low; but increased by the mid-1980s and has remained high
C)  low; and has remained low
D)  high; and has remained high

Question 4

According to many analysts, the spurt of economic growth in 2003 illustrates that

Accepted Answer

A)  the federal government can always produce large levels of economic growth if the right decisions are made regarding deficit spending.
B)  inflation is always a problem that government officials should attempt to solve.
C)  inflation is not a problem that government officials should attempt to solve.
D)  some kinds of public investment, such as military spending on wars, can produce economic growth as a by-product of pursuing other more central objectives.

Question 5

The ________ has taken the lead in conducting basic research to counter bioterrorism.

Accepted Answer

A)  National Science Foundation
B)  Department of Defense
C)  Department of Homeland Security
D)  National Institutes of Health

Question 6

During the Great Depression of 1929-39, approximately ________ percent of the workforce became unemployed.

Accepted Answer

A)  5
B)  20
C)  40
D)  60

Question 7

An officially expressed purpose or goal backed by a sanction is a

Accepted Answer

A)  public policy.
B)  regulation.
C)  rule.
D)  bill.

Question 8

During the New Deal, ________ theory that a government could boost employment by stimulating demand became quite influential.

Accepted Answer

A)  Adam Smith's
B)  Milton Friedman's
C)  Friedrich Hayek's
D)  John Maynard Keynes's

Question 9

Prior to the Great Depression

Accepted Answer

A)  only state governments sought to promote full employment.
B)  only the federal government sought to promote full employment.
C)  both the federal government and the state governments sought to promote full employment.
D)  neither the federal government nor the state governments sought to promote full employment.

Question 10

The ________ is the amount by which government spending exceeds government revenue in a fiscal year.

Accepted Answer

A)  budget deficit
B)  inflation rate
C)  gross domestic product
D)  reserve requirement

Question 11

The constitutional source of Congress's monetary and fiscal powers is in

Accepted Answer

A)  Article I, Section 4.
B)  Article I, Section 8.
C)  the Tenth Amendment.
D)  Article II, Section 4.

Question 12

According to the nonpartisan Congressional Budget Office, the Troubled Asset Relief Program (TARP)  will ultimately cost taxpayers about

Accepted Answer

A)  $9 trillion more than initially expected.
B)  $665 billion more than initially expected.
C)  $9 trillion less than initially expected.
D)  $665 billion less than expected.

Question 13

Which president rejected the theory of Keynesian economics?

Accepted Answer

A)  John Kennedy
B)  Lyndon Johnson
C)  Richard Nixon
D)  Ronald Reagan

Question 14

Although the Federal Reserve's decision to cut the federal funds rate is expected to ________ economic growth, its decision to raise the federal funds rate is expected to
________ economic growth.

Accepted Answer

A)  speed up; slow down
B)  slow down; speed up
C)  have no effect on; speed up
D)  have no effect on; slow down

Question 15

Today, labor unions represent about ________ percent of the labor force.

Accepted Answer

A)  50
B)  35
C)  25
D)  10

Question 16

Which of the following is an example of mandatory spending?

Accepted Answer

A)  farm price supports
B)  Medicare
C)  defense spending
D)  both farm price supports and Medicare

Question 17

Describe how the government uses monetary and fiscal policies to influence the economy.In your answer, be sure to provide clear definitions of what monetary, fiscal, and regulatory policies are and link these definitions to a discussion of the Federal Reserve System and the federal budget.

Accepted Answer

There are three components to this quest...

Question 18

Which of the following statements best characterizes the percentage of federal government revenue that comes from social insurance and corporate taxes since 1960?

Accepted Answer

A)  Social insurance and corporate taxes each compose roughly the same share of federal revenues that they did in 1960.
B)  Social insurance taxes still compose roughly the same share of federal revenues that they did in 1960, but corporate taxes compose a much larger share of federal revenues.
C)  Social insurance taxes now compose a much smaller share of federal revenues than they did in 1960, but corporate taxes still compose roughly the same share of federal revenues.
D)  Social insurance taxes now compose a much greater share of federal revenues than they did in 1960, while corporate taxes compose a much smaller share of federal revenues.

Question 19

In addition to the Consumer Product Safety Commission, the two federal agencies that play the MOST active role in protecting the public from unsafe products are the

Accepted Answer

A)  Department of Transportation and the Food and Drug Administration.
B)  Environmental Protection Agency and the Department of Interior.
C)  American Consumer Institute and the Public Patent Foundation.
D)  Environmental Protection Agency and the American Consumer Institute.

Question 20

The Human Genome Project was initiated

Accepted Answer

A)  by government researchers and taken up later by private corporations.
B)  by private corporations and taken up later by government researchers.
C)  and completed entirely by private corporations.
D)  and completed entirely by government researchers.

Exam 16: Government and the Economy

During the Great Depression of 1929-39, approximately ________ percent of the workforce became unemployed.

Correct AnswerverifiedShow Answer

Which president rejected the theory of Keynesian economics?

Correct AnswerverifiedShow Answer

According to many analysts, the spurt of economic growth in 2003 illustrates that

Correct AnswerverifiedShow Answer

The ________ has taken the lead in conducting basic research to counter bioterrorism.

Correct AnswerverifiedShow Answer

According to the nonpartisan Congressional Budget Office, the Troubled Asset Relief Program (TARP) will ultimately cost taxpayers about

Correct AnswerverifiedShow Answer

An officially expressed purpose or goal backed by a sanction is a

Correct AnswerverifiedShow Answer

Although the Federal Reserve's decision to cut the federal funds rate is expected to ________ economic growth, its decision to raise the federal funds rate is expected to ________ economic growth.

Correct AnswerverifiedShow Answer

The first tax cut designed to stimulate the economy and promote full employment was enacted by President

Correct AnswerverifiedShow Answer

Prior to the Great Depression

Correct AnswerverifiedShow Answer

Describe how the government uses monetary and fiscal policies to influence the economy.In your answer, be sure to provide clear definitions of what monetary, fiscal, and regulatory policies are and link these definitions to a discussion of the Federal Reserve System and the federal budget.

Correct AnswerverifiedThere are three components to this quest...View AnswerShow Answer

The idea that the government can stimulate a slow economy by increasing public spending or cutting taxes is called

Correct AnswerverifiedShow Answer

In addition to the Consumer Product Safety Commission, the two federal agencies that play the MOST active role in protecting the public from unsafe products are the

Correct AnswerverifiedShow Answer

Inflation reached historically ________ levels during the late 1970s, ________ ever since.

Correct AnswerverifiedShow Answer

The constitutional source of Congress's monetary and fiscal powers is in

Correct AnswerverifiedShow Answer

Which of the following is an example of mandatory spending?

Correct AnswerverifiedShow Answer

The Human Genome Project was initiated

Correct AnswerverifiedShow Answer

Which of the following statements best characterizes the percentage of federal government revenue that comes from social insurance and corporate taxes since 1960?

Correct AnswerverifiedShow Answer

The ________ is the amount by which government spending exceeds government revenue in a fiscal year.

Correct AnswerverifiedShow Answer

During the New Deal, ________ theory that a government could boost employment by stimulating demand became quite influential.

Correct AnswerverifiedShow Answer

Today, labor unions represent about ________ percent of the labor force.

Correct AnswerverifiedShow Answer

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Although the Federal Reserve's decision to cut the federal funds rate is expected to economic growth, its decision to raise the federal funds rate is expected to economic growth.

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There are three components to this quest...
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Inflation reached historically levels during the late 1970s, ever since.

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