Question 1

What percentage of college students attends a publicly funded college or university?

Accepted Answer

A)  20%. 
B)  75%. 
C)  40%. 
D)  30%. 
A)  20%. 
B)  75%. 
C)  40%. 
D)  30%.

Question 2

Under President Lyndon Johnson,the federal government actually decreased its involvement in the economy.

Accepted Answer

A) True 
 B)False

Question 3

Deregulation (the reduction of government intervention)began with the oil price shock of 1973.

Accepted Answer

A) True 
 B)False

Question 4

The New Deal was a government outgrowth of World War I.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is NOT a type of tax?

Accepted Answer

A)  Estate tax. 
B)  Payroll tax. 
C)  Excise tax. 
D)  Family tax. 
A)  Estate tax. 
B)  Payroll tax. 
C)  Excise tax. 
D)  Family tax.

Question 6

The Airline Deregulation Act

Accepted Answer

A)  allowed airlines to enter new markets, with government permission. 
B)  allowed airlines to change prices, with government consent. 
C)  created a new regulatory body called American Airlines. 
D)  subjected new airlines only to safety regulations. 
A)  allowed airlines to enter new markets, with government permission. 
B)  allowed airlines to change prices, with government consent. 
C)  created a new regulatory body called American Airlines. 
D)  subjected new airlines only to safety regulations.

Question 7

Which of the following is mentioned in the textbook as a deficiency in private markets for which government action can provide a remedy?

Accepted Answer

A)  Pollution. 
B)  High prices. 
C)  Low interest rates. 
D)  Excessive levels of debt. 
A)  Pollution. 
B)  High prices. 
C)  Low interest rates. 
D)  Excessive levels of debt.

Question 8

What is income redistribution?

Accepted Answer

Income redistribution is the shifting of

Question 9

The Federal Trade Commission is responsible for enforcing

Accepted Answer

A)  health care. 
B)  antitrust law. 
C)  interstate commerce. 
D)  communications law. 
A)  health care. 
B)  antitrust law. 
C)  interstate commerce. 
D)  communications law.

Question 10

The Federal Reserve Board is responsible for

Accepted Answer

A)  maintaining adequate supervision of insurance companies. 
B)  protecting consumers from antitrust violations. 
C)  supervising the financial and monetary system. 
D)  regulating privacy issues relating to health care providers. 
A)  maintaining adequate supervision of insurance companies. 
B)  protecting consumers from antitrust violations. 
C)  supervising the financial and monetary system. 
D)  regulating privacy issues relating to health care providers.

Question 11

The original research that culminated in the Internet was sponsored by

Accepted Answer

A)  Al Gore. 
B)  Microsoft. 
C)  NASA. 
D)  The Defense Department. 
A)  Al Gore. 
B)  Microsoft. 
C)  NASA. 
D)  The Defense Department.

Question 12

The public sector includes state and local governments,as well as the federal government.

Accepted Answer

A) True 
 B)False

Question 13

The inefficiency of taxation means that

Accepted Answer

A)  governments tax only specific industries. 
B)  taxes are applied more on consumers than businesses. 
C)  imposing a tax on goods typically reduces the amount produced. 
D)  imposing a tax on goods reduces prices that buyers pay and decreases supply. 
A)  governments tax only specific industries. 
B)  taxes are applied more on consumers than businesses. 
C)  imposing a tax on goods typically reduces the amount produced. 
D)  imposing a tax on goods reduces prices that buyers pay and decreases supply.

Question 14

The oil price shock of 1973 was caused by

Accepted Answer

A)  A series of earthquakes in Venezuela. 
B)  The overthrow of the Iranian government by terrorists. 
C)  The drying up of two major U.S. oil wells. 
D)  An embargo by the Organization of Petroleum Exporting Countries (OPE
C) . 
A)  A series of earthquakes in Venezuela. 
B)  The overthrow of the Iranian government by terrorists. 
C)  The drying up of two major U.S. oil wells. 
D)  An embargo by the Organization of Petroleum Exporting Countries (OPE
C) .

Question 15

What happens to the market price that buyers face as a result of taxation?

Accepted Answer

A)  It is greater than before the tax was imposed. 
B)  It is less than before the tax was imposed. 
C)  Taxation has no effect on price, only output. 
D)  Taxation affects average cost only. 
A)  It is greater than before the tax was imposed. 
B)  It is less than before the tax was imposed. 
C)  Taxation has no effect on price, only output. 
D)  Taxation affects average cost only.

Question 16

The laws that prevent companies from unfairly trying to get market power or reduce the amount of competition in a market are known as

Accepted Answer

A)  the Universal Commercial Code. 
B)  antitrust laws. 
C)  free-rider laws. 
D)  OSHA, EPA, and FCC. 
A)  the Universal Commercial Code. 
B)  antitrust laws. 
C)  free-rider laws. 
D)  OSHA, EPA, and FCC.

Question 17

Which legislation was NOT signed into law by Richard Nixon?

Accepted Answer

A)  The Environmental Protection Agency Act (EP
A) . 
B)  The Occupational Health and Safety Act (OSH
A) . 
C)  The Equal Employment Opportunity Commission Act (EEO
C) . 
D)  The Social Security Administration Act (SS
A) . 
A)  The Environmental Protection Agency Act (EP
A) . 
B)  The Occupational Health and Safety Act (OSH
A) . 
C)  The Equal Employment Opportunity Commission Act (EEO
C) . 
D)  The Social Security Administration Act (SS
A) .

Question 18

The disadvantages of government intervention include

Accepted Answer

A)  achieving desirable goals. 
B)  lower taxation. 
C)  incentive problems. 
D)  reduced regulation. 
A)  achieving desirable goals. 
B)  lower taxation. 
C)  incentive problems. 
D)  reduced regulation.

Question 19

The Public Broadcasting Service and National Public Radio are examples of

Accepted Answer

A)  private nonprofit organizations. 
B)  private for-profit companies. 
C)  nonprofit government-funded organizations. 
D)  government agencies. 
A)  private nonprofit organizations. 
B)  private for-profit companies. 
C)  nonprofit government-funded organizations. 
D)  government agencies.

Question 20

Which is an example of the government command approach?

Accepted Answer

A)  The growth of community banks. 
B)  Fast-food franchise growth. 
C)  Public schools. 
D)  Private college education. 
A)  The growth of community banks. 
B)  Fast-food franchise growth. 
C)  Public schools. 
D)  Private college education.

What percentage of college students attends a publicly funded college or university?

Under President Lyndon Johnson,the federal government actually decreased its involvement in the economy.

Deregulation (the reduction of government intervention)began with the oil price shock of 1973.

The New Deal was a government outgrowth of World War I.

Which of the following is NOT a type of tax?

The Airline Deregulation Act

Which of the following is mentioned in the textbook as a deficiency in private markets for which government action can provide a remedy?

What is income redistribution?

The Federal Trade Commission is responsible for enforcing

The Federal Reserve Board is responsible for

The original research that culminated in the Internet was sponsored by

The public sector includes state and local governments,as well as the federal government.

The inefficiency of taxation means that

The oil price shock of 1973 was caused by

What happens to the market price that buyers face as a result of taxation?

The laws that prevent companies from unfairly trying to get market power or reduce the amount of competition in a market are known as

Which legislation was NOT signed into law by Richard Nixon?

The disadvantages of government intervention include

The Public Broadcasting Service and National Public Radio are examples of

Which is an example of the government command approach?

Introduction

Demand and Supply: The Basics of the Market Economy

Market Equilibrium and Shifts

How Businesses Work

Competition and Market Power

The First Step Into Macroeconomics

Inflation

Growth

Business Cycles, unemployment and Inflation

Fiscal Policy

Monetary Policy

The Financial Markets

International Trade

Technological Change

Economics of the Labor Market

The Distribution of Income

Economics of Retirement and Healthcare

Economics of Energy, the Environment, and Global Climate Change Glossary

Filters

Exam 6: Government and the Economy

What percentage of college students attends a publicly funded college or university?

Under President Lyndon Johnson,the federal government actually decreased its involvement in the economy.

Deregulation (the reduction of government intervention)began with the oil price shock of 1973.

The New Deal was a government outgrowth of World War I.

Which of the following is NOT a type of tax?

The Airline Deregulation Act

Which of the following is mentioned in the textbook as a deficiency in private markets for which government action can provide a remedy?

What is income redistribution?

The Federal Trade Commission is responsible for enforcing

The Federal Reserve Board is responsible for

The original research that culminated in the Internet was sponsored by

The public sector includes state and local governments,as well as the federal government.

The inefficiency of taxation means that

The oil price shock of 1973 was caused by

What happens to the market price that buyers face as a result of taxation?

The laws that prevent companies from unfairly trying to get market power or reduce the amount of competition in a market are known as

Which legislation was NOT signed into law by Richard Nixon?

The disadvantages of government intervention include

The Public Broadcasting Service and National Public Radio are examples of

Which is an example of the government command approach?

Introduction

Demand and Supply: The Basics of the Market Economy

Market Equilibrium and Shifts

How Businesses Work

Competition and Market Power

The First Step Into Macroeconomics

Inflation

Growth

Business Cycles, unemployment and Inflation

Fiscal Policy

Monetary Policy

The Financial Markets

International Trade

Technological Change

Economics of the Labor Market

The Distribution of Income

Economics of Retirement and Healthcare

Economics of Energy, the Environment, and Global Climate Change Glossary

Filters