Question 1

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) A) and C) E

Question 2

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) B) and C)
G) None of the above

Question 3

Keynesian economics emphasizes ________ as a means of curtailing economic downturns.

Accepted Answer

A)  reduced taxes
B)  increased government spending
C)  decreased regulation
D)  decreased inflation
E)  increased taxesF) B) and D)
G) A) and B)

Question 4

Which of the following statements best describes the relationship today between government and the economy in the United States?

Accepted Answer

A)  The economy is largely self-regulating.
B)  The government subsidizes economic interests but otherwise leaves them to operate as they please.
C)  The government is the driving force in the U.S.economy;business has a secondary role.
D)  The government has an important role in regulating and maintaining the U.S.economy.
E)  The government owns most of the means of production in the United States.F) C) and D)
G) A) and E)

Question 5

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 C)
G) A) and C)

Question 6

The first national park was created at ________ in 1872.

Accepted Answer

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

Question 7

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) B) and E)
G) A) and B)

Question 8

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 D)
G) None of the above

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 D)
G) A) and E)

Question 10

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 B)
G) D) and E)

Question 11

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) B) and C)
G) B) and E)

Question 12

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) C) and D)
G) A) and E)

Question 13

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 D)
G) A) and B) C

Question 14

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) A) and D)
G) A) and C)

Question 15

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

Accepted Answer

Laissez-faire capitalism holds that private individuals and firms should be left alone to make their own production and distribution decisions.As argued by Adam Smith in The Wealth of Nations (1776),demand for a good or service will result in it being provided by the private sector,while a decline in demand will result in a cutback in supply.The incentive that drives this process is profit.According to Smith,the desire for profit is the invisible hand that guides the private economic system toward the greatest wealth for all.Smith did acknowledge that certain areas of the economy,such as roadways,are natural monopolies and are better handled by government than by private firms.No country today follows a purely free-market model,though the United States tends strongly toward the private side.

Question 16

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) A) and B)

Question 17

The Progressive Era of government regulation focused on

Accepted Answer

A)  strengthening consumer protection by preventing credit agencies from gouging individuals with high levels of debt.
B)  bolstering worker safety by increasing the power of unions and forcing better safety practices on businesses.
C)  increasing environmental protection and strengthening the EPA.
D)  regulating troubled economic sectors,such as banking.
E)  stopping the unfair business practices of the new monopolies,such as the railroads.F) B) and E)
G) C) and D)

Question 18

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) C) and D)
G) A) and E)

Question 19

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 C)
G) B) and D)

Question 20

________ wrote The Silent Spring in 1962.

Accepted Answer

A)  Al Gore
B)  George W.Bush
C)  Greenpeace
D)  Rachel Carson
E)  The Sierra ClubF) A) and B)
G) None of the above

Exam 15: Economic and Environmental Policy: Contributing to Prosperity

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

Correct Answer
verified
E

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

Correct Answer
verified

Keynesian economics emphasizes ________ as a means of curtailing economic downturns.

Correct Answer
verified

Which of the following statements best describes the relationship today between government and the economy in the United States?

Correct Answer
verified

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

Correct Answer
verified

The first national park was created at ________ in 1872.

Correct Answer
verified

Which of the following government agencies regulates business competition?

Correct Answer
verified

Earth Day was the brainchild of Senator

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

Correct Answer
verified

Which of the following statements is true?

Correct Answer
verified

Monetary policy includes all the following assumptions EXCEPT that

Correct Answer
verified

Government benefits for business include all of the following EXCEPT

Correct Answer
verified

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 Answer
verified
C

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

Correct Answer
verified

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

The Federal Reserve System

Correct Answer
verified

The Progressive Era of government regulation focused on

Correct Answer
verified

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

Correct Answer
verified

Which is true regarding the nation's environmental policy?

Correct Answer
verified

________ wrote The Silent Spring in 1962.

Correct Answer
verified

Exam 15: Economic and Environmental Policy: Contributing to Prosperity

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

Correct AnswerverifiedE

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

Correct AnswerverifiedShow Answer

Keynesian economics emphasizes ________ as a means of curtailing economic downturns.

Correct AnswerverifiedShow Answer

Which of the following statements best describes the relationship today between government and the economy in the United States?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The first national park was created at ________ in 1872.

Correct AnswerverifiedShow Answer

Which of the following government agencies regulates business competition?

Correct AnswerverifiedShow Answer

Earth Day was the brainchild of Senator

Correct AnswerverifiedShow Answer

What did Congress do in 1995 to reduce overregulation?

Correct AnswerverifiedShow Answer

Which of the following statements is true?

Correct AnswerverifiedShow Answer

Monetary policy includes all the following assumptions EXCEPT that

Correct AnswerverifiedShow Answer

Government benefits for business include all of the following EXCEPT

Correct AnswerverifiedShow Answer

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 AnswerverifiedC

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

Correct AnswerverifiedShow Answer

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

The Federal Reserve System

Correct AnswerverifiedShow Answer

The Progressive Era of government regulation focused on

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which is true regarding the nation's environmental policy?

Correct AnswerverifiedShow Answer

________ wrote The Silent Spring in 1962.

Correct AnswerverifiedShow Answer

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E

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C

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