Question 1

The Great Recession,which began in 2008,was precipitated primarily because the federal government was too lax in regulating

Accepted Answer

A)  computer technology.
B)  the buying and selling of stocks.
C)  interest rates charged to banks.
D)  subprime mortgages.
E)  the buying and selling of junk bonds.F) All of the above
G) A) and E)

Question 2

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 employers.
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 D)
G) B) and D)

Question 3

The Tennessee Valley Authority is

Accepted Answer

A)  an electricity industry owned by the United States.
B)  a private industry regulated by the United States.
C)  a private electricity industry exempt from government regulation.
D)  a private environmental organization that receives federal funding.
E)  a private environmental organization with power to regulate industry.F) All of the above
G) D) and E)

Question 4

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)

Question 5

The Fed chair

Accepted Answer

A)  is appointed by the president,with no approval from the Senate.
B)  serves a four-year term.
C)  rarely cares about monetary policy.
D)  has absolute authority over the Fed.
E)  All of these answers are correct.F) D) and E)
G) A) and D)

Question 6

The ________ established minimum wages.

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

Question 7

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) C) and D)
G) B) and C)

Question 8

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 9

Monetary policy includes all of 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) A) and B)
G) C) and D)

Question 10

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

Question 11

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

Question 12

In which year was the federal budget deficit the LARGEST?

Accepted Answer

A)  2000
B)  2004
C)  2007
D)  2010
E)  2013F) A) and B)
G) C) and D)

Question 13

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) A) and D)

Question 14

A fiscal policy solution to inflation would be to

Accepted Answer

A)  increase government spending.
B)  lower tariffs and other barriers to trade.
C)  increase the tax rate.
D)  raise the discount rate.
E)  decrease the tax rate.F) All of the above
G) A) and B)

Question 15

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 E)
G) None of the above B

Question 16

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 E)
G) C) and E)

Question 17

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 B)
G) B) and C)

Question 18

The total amount of money the federal government owes to its creditors is the

Accepted Answer

A)  trade deficit.
B)  budget deficit.
C)  national debt.
D)  credit imbalance.
E)  income disparity.F) B) and E)
G) B) and D) B

Question 19

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 D)
G) C) and D)

Question 20

Define the term fiscal policy and explain how fiscal policy can be used in response to economic conditions.

Accepted Answer

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

Exam 15: Economic and Environmental Policy: Contributing to Prosperity

The Great Recession,which began in 2008,was precipitated primarily because the federal government was too lax in regulating

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The Tennessee Valley Authority is

Correct AnswerverifiedShow Answer

Which of the following government agencies regulates business competition?

Correct AnswerverifiedShow Answer

The Fed chair

Correct AnswerverifiedShow Answer

The ________ established minimum wages.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

What did Congress do in 1995 to reduce overregulation?

Correct AnswerverifiedShow Answer

Monetary policy includes all of the following assumptions EXCEPT that

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedD

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

Correct AnswerverifiedShow Answer

In which year was the federal budget deficit the LARGEST?

Correct AnswerverifiedShow Answer

Earth Day was the brainchild of Senator

Correct AnswerverifiedShow Answer

A fiscal policy solution to inflation would be to

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedB

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

Correct AnswerverifiedShow Answer

The Federal Reserve System

Correct AnswerverifiedShow Answer

The total amount of money the federal government owes to its creditors is the

Correct AnswerverifiedB

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

Correct AnswerverifiedShow Answer

Define the term fiscal policy and explain how fiscal policy can be used in response to economic conditions.

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D

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