Question 1

Discuss the differences in philosophy,key actors,and tools of fiscal and monetary policy.Should the federal government give preference to one to the other? Why or why not?

Accepted Answer

An ideal response will:
1.Discuss the di...

Question 2

Which of the following is a tax expenditure?

Accepted Answer

A)  a deductible contribution to an IRA
B)  the estate tax
C)  an excise tax
D)  the Social Security payroll

Question 3

Why is almost half of all personal income not taxed?

Accepted Answer

A)  because federal tax rates only apply to adjusted gross income
B)  because federal tax rates only apply to taxable income
C)  because federal tax rates only apply to tax expenditures
D)  because half of all income comes from capital gains,which are not taxed

Question 4

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

Accepted Answer

A)  Economic regulation of industry is the sole responsibility of the secretary of the treasury.
B)  Most Americans would prefer an economy completely free of any federal regulations.
C)  Since the Great Recession,the scope of federal activity in the economy has contracted.
D)  Presidential election outcomes are heavily influenced by the health of the economy.

Question 5

What is the main purpose of monetary policy?

Accepted Answer

A)  to affect how much money is available to businesses and banks
B)  to control the amount of public debt sold to foreign states
C)  to control the interest rates on money lent to foreign states
D)  to equalize income disparity among citizens of the United States

Question 6

___________ represent the imbalance when government expenditures exceed federal tax revenues.

Accepted Answer

The answer of ___________ represent the imbalance when government expenditures...

Question 7

Which of the following statements best describes the relationship between the unemployment rate and GDP growth?

Accepted Answer

A)  As unemployment rates soar,the GDP follows suit.
B)  GDP growth typically predicts rising unemployment rates.
C)  The media focuses primarily on the unemployment rate,but the GDP is the best measure of the national economy.
D)  Unemployment lags behind GDP growth,going down only after the recovery has begun.

Question 8

The most dramatic change in federal tax laws occurred during the years when __________ was president.

Accepted Answer

A)  George H.W.Bush
B)  George W.Bush
C)  Gerald Ford
D)  Ronald Reagan

Question 9

Discuss the 2008-2009 economic crisis and recession.What happened and why? What steps did Congress take in response? What steps,if any,should the government take to prevent this from happening again,and why?

Accepted Answer

An ideal response will:
1.Outline the fa...

Question 10

Why are some social welfare programs referred to as entitlements?

Accepted Answer

A)  because benefits are distributed automatically to citizens who qualify,based on a set of legal rights to benefits
B)  because they are benefits available only to the working poor in the United States
C)  because they are benefits funded through the Title 9 section of the 1965 Civil Rights Act
D)  because they are benefits that are distributed on a case-by-case basis to select citizens in extreme need

Question 11

In general,a recession does which of these?

Accepted Answer

A)  generates a response by state governments
B)  generates a response by the federal government
C)  lasts at least a year
D)  leads to higher inflation

Question 12

What is the source of funding for Social Security?

Accepted Answer

A)  sales taxes
B)  payroll taxes
C)  progressive taxes
D)  property taxes

Question 13

__________ has the primary responsibility for determining interest rates in the United States.

Accepted Answer

A)  Congress
B)  Wall Street
C)  The Federal Reserve Board
D)  The Department of the Treasury

Question 14

Which of the following provides the greatest source of revenue for the federal government?

Accepted Answer

A)  income taxes
B)  Medicaid taxes
C)  regressive taxes
D)  Social Security taxes

Question 15

Medicare is what type of federal program?

Accepted Answer

A)  arbitrary
B)  discretionary
C)  entitlement
D)  in-kind

Question 16

The most recent economic crisis was a depression.

Accepted Answer

A) True 
 B)False

Question 17

The unemployment rate is measured each month by the U.S.Department of Commerce.

Accepted Answer

A) True 
 B)False

Question 18

The Constitution of the United States places all taxing,borrowing,and spending powers in the hands of __________.

Accepted Answer

A)  Congress
B)  the citizens
C)  the federal government
D)  the president

Question 19

Which of these statements best describes the influence of interest rate adjustments by the Federal Reserve?

Accepted Answer

A)  They always lead to lower rates of marginal taxes.
B)  They can lead to higher unemployment in years of budget deficits.
C)  They can spur economic growth by increasing the cost of money for business.
D)  They can spur economic growth by increasing the available money supply.

Question 20

The best way to influence the money supply is through fiscal policy.

Accepted Answer

A) True 
 B)False

Exam 16: Politics and the Economy

Why are some social welfare programs referred to as entitlements?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The best way to influence the money supply is through fiscal policy.

Correct AnswerverifiedShow Answer

Which of the following provides the greatest source of revenue for the federal government?

Correct AnswerverifiedShow Answer

___________ represent the imbalance when government expenditures exceed federal tax revenues.

Correct AnswerverifiedShow Answer

Discuss the differences in philosophy,key actors,and tools of fiscal and monetary policy.Should the federal government give preference to one to the other? Why or why not?

Correct AnswerverifiedAn ideal response will:1.Discuss the di...View AnswerShow Answer

Which of the following is a tax expenditure?

Correct AnswerverifiedShow Answer

Medicare is what type of federal program?

Correct AnswerverifiedShow Answer

Which of the following statements best describes the relationship between the unemployment rate and GDP growth?

Correct AnswerverifiedShow Answer

The unemployment rate is measured each month by the U.S.Department of Commerce.

Correct AnswerverifiedShow Answer

Discuss the 2008-2009 economic crisis and recession.What happened and why? What steps did Congress take in response? What steps,if any,should the government take to prevent this from happening again,and why?

Correct AnswerverifiedAn ideal response will:1.Outline the fa...View AnswerShow Answer

The most dramatic change in federal tax laws occurred during the years when __________ was president.

Correct AnswerverifiedShow Answer

What is the main purpose of monetary policy?

Correct AnswerverifiedShow Answer

The most recent economic crisis was a depression.

Correct AnswerverifiedShow Answer

Which of these statements best describes the influence of interest rate adjustments by the Federal Reserve?

Correct AnswerverifiedShow Answer

Why is almost half of all personal income not taxed?

Correct AnswerverifiedShow Answer

__________ has the primary responsibility for determining interest rates in the United States.

Correct AnswerverifiedShow Answer

In general,a recession does which of these?

Correct AnswerverifiedShow Answer

What is the source of funding for Social Security?

Correct AnswerverifiedShow Answer

The Constitution of the United States places all taxing,borrowing,and spending powers in the hands of __________.

Correct AnswerverifiedShow Answer

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An ideal response will:
1.Discuss the di...
View Answer

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verified
An ideal response will:
1.Outline the fa...
View Answer

Correct Answer
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