Question 1

Farm subsidies have traditionally had strong support in Congress,particularly from

Accepted Answer

A)  representatives whose districts are rural.
B)  rural-state senators and representatives.
C)  senators whose states are rural.
D)  the Speaker of the House and Senate president pro tempore.
E)  Democratic senators and representatives.F) B) and E)
G) C) and D) B

Question 2

Define the term fiscal policy and explain how fiscal policy can be used in response to economic conditions.
D.Roosevelt in the 1930s.When there is an economic downturn,government can increase its spending or cut individual taxes as a means of stimulating consumer (demand-side)spending.When the economy is inflationary,the opposite actions can be taken as a way of dampening consumer demand.Fiscal policy can also take a supply-side form,as it did in part during the Reagan years.Supply-side emphasizes business production and investment.The economy can be stimulated through a reduction in taxes on firms and high-income individuals.

Accepted Answer

The government's efforts to maintain a s...

Question 3

The tax cuts pushed by President George W.Bush while in office were premised largely on

Accepted Answer

A)  demand-side economics.
B)  supply-side economics.
C)  fiscal policy.
D)  monetary policy.
E)  Keynesian economics.F) A) and B)
G) None of the above

Question 4

Monetary policy differs from fiscal policy in that

Accepted Answer

A)  it has to be exercised by the legislature.
B)  the policy goals are very different.
C)  it is a slower process than fiscal policy.
D)  it can be implemented more quickly than fiscal policy.
E)  None of these answers is correct.F) All of the above
G) A) and E)

Question 5

Members of the Federal Reserve Board

Accepted Answer

A)  serve for variable terms and are exposed to high levels of political pressure.
B)  have no power to refuse congressional requests for information.
C)  are appointed by the president and can be removed by the Senate.
D)  are appointed by Congress and can be removed by Congress.
E)  are appointed by the president and are not subject to removal.F) A) and E)
G) A) and D)

Question 6

Which of the following statements is true?

Accepted Answer

A)  The national debt was eliminated in 1998.
B)  The chair of the Fed creates the president's budget on an annual basis.
C)  Keynes advocated government spending to counteract an economic downturn.
D)  The highest budget deficit in U.S.history was $59 billion.
E)  The Congressional Budget Office creates the president's budget on an annual basis.F) A) and D)
G) B) and E)

Question 7

About what percentage of the annual federal budget is accounted for by the interest paid on the national debt?

Accepted Answer

A)  50%
B)  5%
C)  25%
D)  15%
E)  2%F) A) and E)
G) A) and D)

Question 8

What has been the preferred strategy of U.S.lawmakers for combating the problem of global warming?

Accepted Answer

A)  reducing regulation on businesses to allow more private-sector solutions to develop creatively
B)  raising interest rates to slow down the economy
C)  business-tradable carbon tax credits
D)  reduction of carbon emissions
E)  alternative energy sources and energy conservationF) A) and D)
G) A) and B)

Question 9

What did Congress do in 1995 to reduce overregulation?

Accepted Answer

A)  It cut funding for regulatory agencies like the EPA and Securities and Exchange Commission.
B)  It passed the Airlines Deregulation Act,which eliminated government-set airfares and the requirement that airlines provide service to smaller-sized cities.
C)  It restricted the president's ability to directly request administrative regulations from agency heads.
D)  It cut the budget of the Food and Drug Administration.
E)  It enacted legislation that prohibits administrators in some instances from issuing a regulation unless they can show that its benefits outweigh its costs.F) A) and B)
G) C) and D)

Question 10

The highest rate of inflation (13 percent) since World War II occurred in ________.

Accepted Answer

A)  1955
B)  1963
C)  1979
D)  1991
E)  2002F) B) and E)
G) All of the above

Question 11

If the economic problem is low productivity and high unemployment,the fiscal policy action on the demand side would be to

Accepted Answer

A)  increase taxes.
B)  cut business taxes.
C)  increase spending.
D)  decrease spending.
E)  None of these answers is correct.F) None of the above
G) B) and C) C

Question 12

The era of "new social regulation",which addressed issues such as the environment and worker safety,differed from the previous two eras of regulatory reform in that

Accepted Answer

A)  the Republican Party took the lead in placing additional regulations on business.
B)  the aim was to regulate activities of firms of many types,not just those in a particular industry.
C)  the regulatory agencies were established in a way that prevented the president from having a role in their operations.
D)  the guiding principle was self-regulation-business was given wide leeway in deciding how it would comply with the new requirement.
E)  the guiding principle was overregulation-business would be allowed almost no leeway in deciding how it would comply with new regulations.F) A) and E)
G) C) and D)

Question 13

Which is true regarding the nation's environmental policy?

Accepted Answer

A)  The first major steps by the national government to clean up the environment began in the early 1900s.
B)  A majority of the public is sympathetic to environmentalism.
C)  The modern environmental movement gained impetus with the publication of Armageddon in 1949.
D)  In the 1960s,the government began a policy of land conservation through the creation of national parks.
E)  A majority of the public is not sympathetic to environmentalism.F) A) and D)
G) C) and E)

Question 14

The ________ established minimum wages and constraints on the use of child labor.

Accepted Answer

A)  Securities and Exchange Act of 1934
B)  Banking Act of 1934
C)  Airlines Deregulation Act of 1977
D)  Fair Labor Standards Act of 1938
E)  Homestead Act of 1862F) A) and B)
G) A) and C)

Question 15

The first national park was created at ________ in 1872.

Accepted Answer

A)  Acadia
B)  Yellowstone
C)  Yosemite
D)  Mammoth Cave
E)  the Grand CanyonF) All of the above
G) A) and C)

Question 16

Government support for agriculture in the form of price supports and income subsidies is designed primarily to

Accepted Answer

A)  increase farm production in order to meet the nation's food needs.
B)  stabilize farm income,which would otherwise fluctuate greatly due to market and weather conditions.
C)  promote farm conservation so as to preserve the productive capacity of U.S.agriculture.
D)  encourage rural development.
E)  encourage urban development.F) A) and B)
G) A) and C)

Question 17

The Federal Reserve plays a large part in establishing ________ policy.

Accepted Answer

A)  monetary
B)  military
C)  fiscal
D)  budgetary
E)  securityF) C) and E)
G) None of the above A

Question 18

Supply-side economics,as implemented by President George W.Bush's administration,involved

Accepted Answer

A)  the supply component of the supply-demand equation.
B)  stressing the importance of tax cuts for businesses.
C)  stressing the importance of tax cuts for the wealthy.
D)  an increase in the size of the national debt.
E)  All these answers are correct.F) B) and E)
G) None of the above

Question 19

Describe Adam Smith's laissez-faire model of economics.

Accepted Answer

Laissez-faire capitalism holds that priv...

Question 20

When the Fed was created in 1913,

Accepted Answer

A)  it had no role in the management of the nation's economy.
B)  it was restricted to providing emergency loans to financial institutions.
C)  it adhered to a strictly supply-side policy focus.
D)  its primary economic management tool was to reduce inflation by restricting the money supply.
E)  it was far more likely to increase the money supply by lowering interest rates than to restrict it by raising them.F) All of the above
G) D) and E)

Exam 15: Economic and Environmental Policy: Contributing to Prosperity

Farm subsidies have traditionally had strong support in Congress,particularly from

Correct Answer
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B

Correct Answer
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The government's efforts to maintain a s...
View Answer

The tax cuts pushed by President George W.Bush while in office were premised largely on

Correct Answer
verified

Monetary policy differs from fiscal policy in that

Correct Answer
verified

Members of the Federal Reserve Board

Correct Answer
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Which of the following statements is true?

Correct Answer
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About what percentage of the annual federal budget is accounted for by the interest paid on the national debt?

Correct Answer
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What has been the preferred strategy of U.S.lawmakers for combating the problem of global warming?

Correct Answer
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What did Congress do in 1995 to reduce overregulation?

Correct Answer
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The highest rate of inflation (13 percent) since World War II occurred in ________.

Correct Answer
verified

If the economic problem is low productivity and high unemployment,the fiscal policy action on the demand side would be to

Correct Answer
verified
C

The era of "new social regulation",which addressed issues such as the environment and worker safety,differed from the previous two eras of regulatory reform in that

Correct Answer
verified

Which is true regarding the nation's environmental policy?

Correct Answer
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The ________ established minimum wages and constraints on the use of child labor.

Correct Answer
verified

The first national park was created at ________ in 1872.

Correct Answer
verified

Government support for agriculture in the form of price supports and income subsidies is designed primarily to

Correct Answer
verified

The Federal Reserve plays a large part in establishing ________ policy.

Correct Answer
verified
A

Supply-side economics,as implemented by President George W.Bush's administration,involved

Correct Answer
verified

Describe Adam Smith's laissez-faire model of economics.

Correct Answer
verified
Laissez-faire capitalism holds that priv...
View Answer

When the Fed was created in 1913,

Correct Answer
verified

Exam 15: Economic and Environmental Policy: Contributing to Prosperity

Farm subsidies have traditionally had strong support in Congress,particularly from

Correct AnswerverifiedB

Correct AnswerverifiedThe government's efforts to maintain a s...View AnswerShow Answer

The tax cuts pushed by President George W.Bush while in office were premised largely on

Correct AnswerverifiedShow Answer

Monetary policy differs from fiscal policy in that

Correct AnswerverifiedShow Answer

Members of the Federal Reserve Board

Correct AnswerverifiedShow Answer

Which of the following statements is true?

Correct AnswerverifiedShow Answer

About what percentage of the annual federal budget is accounted for by the interest paid on the national debt?

Correct AnswerverifiedShow Answer

What has been the preferred strategy of U.S.lawmakers for combating the problem of global warming?

Correct AnswerverifiedShow Answer

What did Congress do in 1995 to reduce overregulation?

Correct AnswerverifiedShow Answer

The highest rate of inflation (13 percent) since World War II occurred in ________.

Correct AnswerverifiedShow Answer

If the economic problem is low productivity and high unemployment,the fiscal policy action on the demand side would be to

Correct AnswerverifiedC

The era of "new social regulation",which addressed issues such as the environment and worker safety,differed from the previous two eras of regulatory reform in that

Correct AnswerverifiedShow Answer

Which is true regarding the nation's environmental policy?

Correct AnswerverifiedShow Answer

The ________ established minimum wages and constraints on the use of child labor.

Correct AnswerverifiedShow Answer

The first national park was created at ________ in 1872.

Correct AnswerverifiedShow Answer

Government support for agriculture in the form of price supports and income subsidies is designed primarily to

Correct AnswerverifiedShow Answer

The Federal Reserve plays a large part in establishing ________ policy.

Correct AnswerverifiedA

Supply-side economics,as implemented by President George W.Bush's administration,involved

Correct AnswerverifiedShow Answer

Describe Adam Smith's laissez-faire model of economics.

Correct AnswerverifiedLaissez-faire capitalism holds that priv...View AnswerShow Answer

When the Fed was created in 1913,

Correct AnswerverifiedShow Answer

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B

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The government's efforts to maintain a s...
View Answer

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C

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A

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Laissez-faire capitalism holds that priv...
View Answer

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