Question 1

Monetary policy includes all the following assumptions EXCEPT that

Accepted Answer

A)  the money supply is the key to sustaining a healthy economy.
B)  too little money in circulation contributes to inflation.
C)  too little money in circulation contributes to a slowdown in consumer buying.
D)  too little money in circulation contributes to a slowdown in production.
E)  too much money in circulation contributes to inflation.F) C) and E)
G) B) and C)

Question 2

Advocates of deregulation are primarily concerned with

Accepted Answer

A)  efficiency.
B)  equity.
C)  externalities.
D)  public safety.
E)  political expediency.F) C) and D)
G) A) and E)

Question 3

Regarding the Kyoto agreement and greenhouse gas emissions,which of the following is true?

Accepted Answer

A)  The United States is the largest single producer of greenhouse emissions in the world,on a per-capita basis.
B)  President George W.Bush rejected the agreement.
C)  It was a multinational effort to reduce carbon emissions.
D)  The burden of addressing the global warming problem will fall unevenly on nations.
E)  All these answers are correct.F) A) and D)
G) C) and D)

Question 4

Define the term monetary policy,and describe two ways the Fed implements monetary policy.

Accepted Answer

Monetary policy is based on manipulation...

Question 5

Government benefits for business include all of the following EXCEPT

Accepted Answer

A)  low-interest loans and government-guaranteed loans.
B)  corporate tax breaks.
C)  a national transportation system.
D)  minimum-wage laws.
E)  a national education system.F) A) and C)
G) B) and E)

Question 6

Earth Day was the brainchild of Senator

Accepted Answer

A)  Ted Kennedy.
B)  Robert Byrd.
C)  Mike Mansfield.
D)  Ted Stevens.
E)  Gaylord Nelson.F) B) and C)
G) C) and D)

Question 7

What was a major change brought about by the National Labor Relations Act of 1935?

Accepted Answer

A)  It established the national minimum wage.
B)  It broke up business monopolies in order to give workers more choice in employer.
C)  Workers were given the right to bargain collectively.
D)  It eliminated the ability of companies to bargain directly with unions.
E)  It reduced the ability of workers to go on strike indefinitely.F) C) and E)
G) D) and E)

Question 8

A ruling by the Food and Drug Administration that a drug is dangerous to use and therefore cannot be marketed is an example of regulation for the purpose of

Accepted Answer

A)  supply-side safety.
B)  demand-side safety.
C)  equity.
D)  efficiency.
E)  profit.F) C) and E)
G) A) and B)

Question 9

Democrats in Washington have usually responded to high levels of unemployment with

Accepted Answer

A)  reduced government spending.
B)  increased government spending.
C)  increased government taxes.
D)  decreased government taxes.
E)  decreased government regulation.F) A) and E)
G) C) and E)

Question 10

Which president's use of government policy as economic stimulus ushered in the modern era of U.S.government fiscal policy?

Accepted Answer

A)  Thomas Jefferson
B)  Franklin Roosevelt
C)  Lyndon Johnson
D)  Woodrow Wilson
E)  William ClintonF) B) and D)
G) B) and E)

Question 11

Fiscal policy is a mechanism the government employs to influence the economy.Fiscal policy is based on

Accepted Answer

A)  the idea that a balanced budget is the key to a healthy economy.
B)  the money supply.
C)  the government's taxing and spending decisions.
D)  the importance of maintaining a 12-month (fiscal year) economic cycle.
E)  the projections of the Federal Reserve Board.F) C) and E)
G) A) and D)

Question 12

Supply-side economics is based primarily on

Accepted Answer

A)  stimulation of the business (supply) component.
B)  government stimulation of consumer demands.
C)  a repudiation of trickle-down theory.
D)  increases in taxation.
E)  increases in government regulation.F) B) and D)
G) A) and C)

Question 13

A major point of debate surrounding the Federal Reserve's role in economic policy is

Accepted Answer

A)  the Fed's political accountability.
B)  whether the president should be able to veto the Fed's decisions.
C)  the issue of competence.
D)  whether Congress should be able to reject the Fed's decisions.
E)  None of these answers is correct.F) D) and E)
G) C) and E)

Question 14

The Superfund program is designed to

Accepted Answer

A)  bail out financial institutions that are considered too large to collapse.
B)  provide domestic farmers with subsidies in order to remain competitive with international farming.
C)  provide funds for cleaning up badly contaminated and polluted sites.
D)  provide the president with emergency funds to deal with major natural disasters.
E)  None of these answers is correct.F) A) and D)
G) A) and E)

Question 15

The Federal Reserve System

Accepted Answer

A)  was created in 1933.
B)  is run by a congressional committee.
C)  regulates only national banks.
D)  was created specifically to conduct fiscal policy.
E)  None of these answers is correct.F) A) and D)
G) None of the above

Question 16

Judged in the context of the full range of public policies,the government in the United States has been

Accepted Answer

A)  equally hostile to the interests of business and labor.
B)  equally supportive of the interests of business and labor.
C)  substantially more supportive of business than labor.
D)  substantially more supportive of labor than business.
E)  substantially more supportive of left-wing radicals than conservatives.F) A) and D)
G) A) and E)

Question 17

The federal government has assumed a permanent,strong role in the economy,contributing to its stability and efficiency,since

Accepted Answer

A)  the 1930s.
B)  the 1860s.
C)  the 1960s.
D)  the 1980s.
E)  None of these is correct; federal spending has reached high levels only sporadically.F) C) and D)
G) D) and E)

Question 18

In John Maynard Keynes's demand-side economic theory,an economic recession can be shortened through

Accepted Answer

A)  government spending programs.
B)  the natural workings of the free-market system.
C)  a lowering of tariffs in the global economy.
D)  a determination on the part of government not to spend any more than it receives in taxes.
E)  tax cuts for the wealthy.F) All of the above
G) A) and E)

Question 19

Over the past forty years,the burden of federal taxation has

Accepted Answer

A)  shifted from big business to small business.
B)  shifted from individuals to corporations.
C)  shifted from corporations to individuals.
D)  evened out between individuals and corporations.
E)  None of these answers is correct.F) A) and C)
G) A) and B)

Question 20

Which of the following government agencies regulates business competition?

Accepted Answer

A)  Federal Trade Commission
B)  Interstate Commerce Commission
C)  Antitrust Division of the Justice Department
D)  all of these: the Federal Trade Commission; the Interstate Commerce Commission; and the Antitrust Division of the Justice Department
E)  None of these answers is correct.F) A) and B)
G) A) and C)

Exam 15: Economic and Environmental Policy: Contributing to Prosperity

Judged in the context of the full range of public policies,the government in the United States has been

Correct AnswerverifiedShow Answer

In John Maynard Keynes's demand-side economic theory,an economic recession can be shortened through

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Define the term monetary policy,and describe two ways the Fed implements monetary policy.

Correct AnswerverifiedMonetary policy is based on manipulation...View AnswerShow Answer

Which of the following government agencies regulates business competition?

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Regarding the Kyoto agreement and greenhouse gas emissions,which of the following is true?

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Monetary policy includes all the following assumptions EXCEPT that

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A ruling by the Food and Drug Administration that a drug is dangerous to use and therefore cannot be marketed is an example of regulation for the purpose of

Correct AnswerverifiedShow Answer

Over the past forty years,the burden of federal taxation has

Correct AnswerverifiedShow Answer

The federal government has assumed a permanent,strong role in the economy,contributing to its stability and efficiency,since

Correct AnswerverifiedShow Answer

A major point of debate surrounding the Federal Reserve's role in economic policy is

Correct AnswerverifiedShow Answer

Supply-side economics is based primarily on

Correct AnswerverifiedShow Answer

Democrats in Washington have usually responded to high levels of unemployment with

Correct AnswerverifiedShow Answer

The Superfund program is designed to

Correct AnswerverifiedShow Answer

Which president's use of government policy as economic stimulus ushered in the modern era of U.S.government fiscal policy?

Correct AnswerverifiedShow Answer

What was a major change brought about by the National Labor Relations Act of 1935?

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Government benefits for business include all of the following EXCEPT

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The Federal Reserve System

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Fiscal policy is a mechanism the government employs to influence the economy.Fiscal policy is based on

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Advocates of deregulation are primarily concerned with

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Earth Day was the brainchild of Senator

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Monetary policy is based on manipulation...
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