Question 1

What is the role of the Federal Reserve in the US economy?

Accepted Answer

A)  directing international trade policy 
B)  implementing fiscal policy 
C)  overseeing monetary policy 
D)  establishing regulatory policy 
A)  directing international trade policy 
B)  implementing fiscal policy 
C)  overseeing monetary policy 
D)  establishing regulatory policy C

Question 2

George W. Bush's three-month moratorium on the creation of new regulations illustrates the president's __________.

Accepted Answer

A)  commitment to preventing congressional oversight of the budget process 
B)  ability to change the regulatory review process to suit his or her economic agenda 
C)  concerns about bureaucratic drift in economic policy 
D)  deference to Congress with respect to economic policy implementation 
A)  commitment to preventing congressional oversight of the budget process 
B)  ability to change the regulatory review process to suit his or her economic agenda 
C)  concerns about bureaucratic drift in economic policy 
D)  deference to Congress with respect to economic policy implementation B

Question 3

The president and the Federal Reserve are powerfully motivated to signal accord between them because discord can __________.

Accepted Answer

A)  permit the politicization of economic policy 
B)  reduce presidential legitimacy 
C)  provide opportunities for congressional intervention 
D)  create uncertainty in markets 
A)  permit the politicization of economic policy 
B)  reduce presidential legitimacy 
C)  provide opportunities for congressional intervention 
D)  create uncertainty in markets D

Question 4

Who prepares the annual Economic Report of the President?

Accepted Answer

A)  Treasury Department 
B)  Federal Reserve 
C)  Office of Management and Budget 
D)  Council of Economic Advisors 
A)  Treasury Department 
B)  Federal Reserve 
C)  Office of Management and Budget 
D)  Council of Economic Advisors

Question 5

The Tax Reform Act illustrates the __________.

Accepted Answer

A)  role of the president in developing and reforming national tax policy 
B)  power of special interests to capture the president's economic agenda 
C)  ability of Congress to prevent significant presidential action on tax reform 
D)  need of presidents to wait for congressional action on tax reform policy 
A)  role of the president in developing and reforming national tax policy 
B)  power of special interests to capture the president's economic agenda 
C)  ability of Congress to prevent significant presidential action on tax reform 
D)  need of presidents to wait for congressional action on tax reform policy

Question 6

The claim that the state of the domestic economy bears on political decisions about the minimum wage is supported by the fact that the minimum wage __________.

Accepted Answer

A)  has been increased only during periods of divided government 
B)  was first created during the economic boom of the 1920s 
C)  is only raised during major recessionary periods 
D)  has never been raised when unemployment stood above 7.5 percent 
A)  has been increased only during periods of divided government 
B)  was first created during the economic boom of the 1920s 
C)  is only raised during major recessionary periods 
D)  has never been raised when unemployment stood above 7.5 percent

Question 7

Which of the following demonstrates the power of the presidency to bypass Congress in the implementation of economic policy?

Accepted Answer

A)  Ronald Reagan's support for Bob Packwood in exchange for passing the Tax Reform Act 
B)  Barack Obama's executive order increasing the minimum wage for federal contractors 
C)  Lyndon Johnson's advocacy for the Economic Opportunity Act 
D)  George W. Bush's proposal for the TARP program during the Great Recession 
A)  Ronald Reagan's support for Bob Packwood in exchange for passing the Tax Reform Act 
B)  Barack Obama's executive order increasing the minimum wage for federal contractors 
C)  Lyndon Johnson's advocacy for the Economic Opportunity Act 
D)  George W. Bush's proposal for the TARP program during the Great Recession

Question 8

In general, what do the responses to the Great Recession by Bush and Obama represent?

Accepted Answer

A)  They illustrate the inconsistency in policy responses to economic crisis. 
B)  They show that the growth of presidential power has been minimal. 
C)  They demonstrate a reliance on Congress to set the agenda for the recovery. 
D)  They reflect a long-term trend in increased presidential power and activism. 
A)  They illustrate the inconsistency in policy responses to economic crisis. 
B)  They show that the growth of presidential power has been minimal. 
C)  They demonstrate a reliance on Congress to set the agenda for the recovery. 
D)  They reflect a long-term trend in increased presidential power and activism.

Question 9

Which statement best characterizes the structure of the Federal Reserve?

Accepted Answer

A)  It is an entirely private entity with the sole responsibility of managing fiscal policy. 
B)  It is a semi-private, semi-public institution that oversees national monetary policy. 
C)  It is a public institution controlled by Congress that manages monetary policy. 
D)  It is a public government corporation that manages national fiscal policy. 
A)  It is an entirely private entity with the sole responsibility of managing fiscal policy. 
B)  It is a semi-private, semi-public institution that oversees national monetary policy. 
C)  It is a public institution controlled by Congress that manages monetary policy. 
D)  It is a public government corporation that manages national fiscal policy.

Question 10

Which statement provides evidence of the trend toward increasing presidential responsibility for the domestic economy?

Accepted Answer

A)  The president is required by the Constitution to present a State of the Economy address in addition to the State of the Union address. 
B)  Congress has eliminated the CBO and relies exclusively on the executive branch for economic information. 
C)  The president is compelled by law to forecast the state of the economy for the upcoming year and to design policies to improve it. 
D)  The president has exempted any agency dealing with economic questions from congressional oversight. 
A)  The president is required by the Constitution to present a State of the Economy address in addition to the State of the Union address. 
B)  Congress has eliminated the CBO and relies exclusively on the executive branch for economic information. 
C)  The president is compelled by law to forecast the state of the economy for the upcoming year and to design policies to improve it. 
D)  The president has exempted any agency dealing with economic questions from congressional oversight.

Question 11

The claim that when the economy enters a crisis the Treasury Department is expected to lead the response is best illustrated by __________.

Accepted Answer

A)  the agency's responsibility for printing currency 
B)  the Treasury Department's management of TARP 
C)  the establishment of FinCEN within the agency 
D)  the role of the Inspector General in departmental oversight 
A)  the agency's responsibility for printing currency 
B)  the Treasury Department's management of TARP 
C)  the establishment of FinCEN within the agency 
D)  the role of the Inspector General in departmental oversight

Question 12

What differentiated the actions of Barack Obama from Franklin Roosevelt with respect to the federal minimum wage?

Accepted Answer

A)  Roosevelt was much more successful than Obama in expanding presidential power in the minimum wage policy arena. 
B)  Obama relied heavily on negotiating bipartisan support for minimum wage legislation while Roosevelt resorted to executive powers to achieve his goals. 
C)  Roosevelt was convinced that raising the minimum wage was a critical component to advancing his economic policy goals while Obama deferred to Congress on the matter. 
D)  Obama was willing to directly bypass Congress by using an executive order while Roosevelt worked to convince Congress to raise the minimum wage. 
A)  Roosevelt was much more successful than Obama in expanding presidential power in the minimum wage policy arena. 
B)  Obama relied heavily on negotiating bipartisan support for minimum wage legislation while Roosevelt resorted to executive powers to achieve his goals. 
C)  Roosevelt was convinced that raising the minimum wage was a critical component to advancing his economic policy goals while Obama deferred to Congress on the matter. 
D)  Obama was willing to directly bypass Congress by using an executive order while Roosevelt worked to convince Congress to raise the minimum wage.

Question 13

Which of the following illustrates industry efforts to resist free trade policies?

Accepted Answer

A)  negotiation of a 350 percent tariff on foreign tobacco by the US tobacco industry 
B)  requirement that banks provide home loans for foreign applicants 
C)  advocacy by Verizon for the United States to join the World Trade Organization 
D)  pressure by Microsoft to reduce quotas on computer chips produced in China 
A)  negotiation of a 350 percent tariff on foreign tobacco by the US tobacco industry 
B)  requirement that banks provide home loans for foreign applicants 
C)  advocacy by Verizon for the United States to join the World Trade Organization 
D)  pressure by Microsoft to reduce quotas on computer chips produced in China

Question 14

Since 1950, individual income taxes have accounted for roughly what percentage of total federal revenues?

Accepted Answer

A)  30?40 percent 
B)  40?50 percent 
C)  60?70 percent 
D)  70?80 percent 
A)  30?40 percent 
B)  40?50 percent 
C)  60?70 percent 
D)  70?80 percent

Question 15

Which congressional act supports the claim that the president is formally recognized as the most important steward of the domestic economy?

Accepted Answer

A)  Employment Act 
B)  Economic Opportunity Act 
C)  Tax Reform Act 
D)  National Industrial Recovery Act 
A)  Employment Act 
B)  Economic Opportunity Act 
C)  Tax Reform Act 
D)  National Industrial Recovery Act

Question 16

Who was the first Secretary of the Treasury?

Accepted Answer

A)  James Madison 
B)  John Adams 
C)  Alexander Hamilton 
D)  James Monroe 
A)  James Madison 
B)  John Adams 
C)  Alexander Hamilton 
D)  James Monroe

Question 17

The president's budget is produced by the __________.

Accepted Answer

A)  Office of Management and Budget 
B)  Congressional Budget Office 
C)  Treasury Department 
D)  Federal Reserve 
A)  Office of Management and Budget 
B)  Congressional Budget Office 
C)  Treasury Department 
D)  Federal Reserve

Question 18

What does the reduction of barriers in international trade encourage?

Accepted Answer

A)  differentiation in economic activities in which states have high levels of taxes 
B)  diversification in economic activities in states with low levels of regulation 
C)  specialization in economic activities in which states have a comparative advantage 
D)  deregulation in economic activities in which states have no comparative advantage 
A)  differentiation in economic activities in which states have high levels of taxes 
B)  diversification in economic activities in states with low levels of regulation 
C)  specialization in economic activities in which states have a comparative advantage 
D)  deregulation in economic activities in which states have no comparative advantage

Question 19

Under the EOA, the federal government could bypass state and local governments by __________.

Accepted Answer

A)  allowing gubernatorial vetoes of EOA actions to be overridden by the OEO director 
B)  prohibiting state governors from vetoing EOA grants and initiatives 
C)  administering the program exclusively at the federal level 
D)  appointing state-level program directors who were not subject to state or local controls 
A)  allowing gubernatorial vetoes of EOA actions to be overridden by the OEO director 
B)  prohibiting state governors from vetoing EOA grants and initiatives 
C)  administering the program exclusively at the federal level 
D)  appointing state-level program directors who were not subject to state or local controls

Question 20

What evidence would support that claim that free trade has widespread economic benefits?

Accepted Answer

A)  the creation of the Office of Management and Budget 
B)  the support for presidential fast-track authority in Congress 
C)  the rejection of fiscal policy by WTO members 
D)  high economic growth rates in the aftermath of GATT 
A)  the creation of the Office of Management and Budget 
B)  the support for presidential fast-track authority in Congress 
C)  the rejection of fiscal policy by WTO members 
D)  high economic growth rates in the aftermath of GATT

What is the role of the Federal Reserve in the US economy?

George W. Bush's three-month moratorium on the creation of new regulations illustrates the president's __________.

The president and the Federal Reserve are powerfully motivated to signal accord between them because discord can __________.

Who prepares the annual Economic Report of the President?

The Tax Reform Act illustrates the __________.

The claim that the state of the domestic economy bears on political decisions about the minimum wage is supported by the fact that the minimum wage __________.

Which of the following demonstrates the power of the presidency to bypass Congress in the implementation of economic policy?

In general, what do the responses to the Great Recession by Bush and Obama represent?

Which statement best characterizes the structure of the Federal Reserve?

Which statement provides evidence of the trend toward increasing presidential responsibility for the domestic economy?

The claim that when the economy enters a crisis the Treasury Department is expected to lead the response is best illustrated by __________.

What differentiated the actions of Barack Obama from Franklin Roosevelt with respect to the federal minimum wage?

Which of the following illustrates industry efforts to resist free trade policies?

Since 1950, individual income taxes have accounted for roughly what percentage of total federal revenues?

Which congressional act supports the claim that the president is formally recognized as the most important steward of the domestic economy?

Who was the first Secretary of the Treasury?

The president's budget is produced by the __________.

What does the reduction of barriers in international trade encourage?

Under the EOA, the federal government could bypass state and local governments by __________.

What evidence would support that claim that free trade has widespread economic benefits?

Constitutional Origins

An Institutional Presidency

Power and the Institutional Presidency

The Nomination of Presidents

General Elections

Transitions of Governance

Negotiating With Congress

Unilateral Powers

Political Control of the Bureaucracy

Presidential Relations With the Federal Judiciary

Public Opinion and the Media

Domestic Policy

Foreign Policy

Wartime Policymaking at Home

Appedix: Introduction Thinking Institutionally about an American Presidency

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Exam 14: Economic Policy

What is the role of the Federal Reserve in the US economy?

George W. Bush's three-month moratorium on the creation of new regulations illustrates the president's __________.

The president and the Federal Reserve are powerfully motivated to signal accord between them because discord can __________.

Who prepares the annual Economic Report of the President?

The Tax Reform Act illustrates the __________.

The claim that the state of the domestic economy bears on political decisions about the minimum wage is supported by the fact that the minimum wage __________.

Which of the following demonstrates the power of the presidency to bypass Congress in the implementation of economic policy?

In general, what do the responses to the Great Recession by Bush and Obama represent?

Which statement best characterizes the structure of the Federal Reserve?

Which statement provides evidence of the trend toward increasing presidential responsibility for the domestic economy?

The claim that when the economy enters a crisis the Treasury Department is expected to lead the response is best illustrated by __________.

What differentiated the actions of Barack Obama from Franklin Roosevelt with respect to the federal minimum wage?

Which of the following illustrates industry efforts to resist free trade policies?

Since 1950, individual income taxes have accounted for roughly what percentage of total federal revenues?

Which congressional act supports the claim that the president is formally recognized as the most important steward of the domestic economy?

Who was the first Secretary of the Treasury?

The president's budget is produced by the __________.

What does the reduction of barriers in international trade encourage?

Under the EOA, the federal government could bypass state and local governments by __________.

What evidence would support that claim that free trade has widespread economic benefits?

Constitutional Origins

An Institutional Presidency

Power and the Institutional Presidency

The Nomination of Presidents

General Elections

Transitions of Governance

Negotiating With Congress

Unilateral Powers

Political Control of the Bureaucracy

Presidential Relations With the Federal Judiciary

Public Opinion and the Media

Domestic Policy

Foreign Policy

Wartime Policymaking at Home

Appedix: Introduction Thinking Institutionally about an American Presidency

Filters