Deck 15: Public Policy: Responding to Citizens

Question 1

The first national parks in the United States were created by

A) George Washington.
B) Abraham Lincoln.
C) Theodore Roosevelt.
D) Franklin Roosevelt.
E) John Kennedy.

Answer 1

C

Question 2

Which of the following statements about the Environmental Protection Agency is LEAST accurate?

A) The agency has the authority to determine how much pollution businesses can legally produce.
B) The agency has the authority to identify the source of pollution.
C) The agency has the authority to develop and enforce regulations to protect the country's natural resources.
D) The agency has failed to produce substantial reductions in pollution levels.
E) The agency's regulations have made it more expensive for many industries to function inside the United States.

Answer 2

D

Question 3

EPA regulations exemplify public policies that

A) widely disperse both costs and benefits.
B) concentrate both costs and benefits.
C) concentrate benefits while widely dispersing costs.
D) concentrate costs while widely dispersing benefits.
E) achieve widely dispersed benefits without levying any substantial cost.

Answer 3

D

Question 4

Which of the following statements about environmental legislation in the U.S. today is LEAST accurate?

A) Despite recognition of threats to the environment, the U.S. government is reluctant to commit itself to international standards.
B) The U.S. government tries to balance the often conflicting needs of a healthy environment and a healthy industrial economy.
C) The U.S. government refused to become a signatory to the Paris agreement on climate change for fear of doing too much harm to domestic business.
D) Although the heyday of environmental regulation occurred in the 1970s, the U.S. government has since enacted new legislation to improve fuel efficiency.
E) Some state and local governments have been pledging commitment to international environmental agreements when the national government refuses to do so.

Question 5

What is the last step in the policymaking process?

A) policy formation
B) agenda setting
C) policy implementation
D) policy adoption
E) policy evaluation

Question 6

Which of the following is an example of a policy whose benefits and costs are both concentrated?

A) Social Security
B) funding for public schools
C) air pollution controls
D) agriculture subsidies
E) tax policy

Question 7

Which of the following statements about the environment and environmental protection is most accurate?

A) Pollution on Ohio's Cuyahoga River was so bad that the river caught on fire in 1969.
B) Before the 1970s, the federal government had pursued no measures to protect the environment.
C) Environmental protections established in the 1970s have failed to prevent rising levels of pollution.
D) Although environmental protections established in the 1970s have prevented pollution levels from rising, they have failed to reduce pollution levels significantly.
E) Since an initial flurry of legislation in the 1970s, Congress has passed no new environmental legislation.

Question 8

Which of the following is an example of a policy whose benefits are widely distributed but whose costs are concentrated?

A) Social Security
B) funding for public schools
C) air pollution controls
D) agriculture subsidies
E) tax policy

Question 9

In 2013, President Obama ordered a reduction of carbon pollution from the nation's coal-fired plants by ________ by the year 2030.

A) 5 percent
B) 15 percent
C) 20 percent
D) 50 percent
E) 30 percent

Question 10

Which nation produces the highest absolute levels of carbon dioxide emissions?

A) Brazil
B) China
C) Japan
D) United States
E) Mexico

Question 11

Which of the following is an example of a policy whose costs are widely distributed but whose benefits are concentrated?

A) Social Security
B) investment bank regulations and investigations
C) air pollution controls
D) public colleges
E) tax policy

Question 12

Many lawmakers remained reluctant until recently to involve government in devising solutions to climate change. This indicates a failure of

A) problem recognition.
B) agenda setting.
C) policy formation.
D) policy adoption.
E) policy evaluation.

Question 13

Which of the following is an example of a policy whose benefits and costs are both widely distributed?

A) Social Security
B) funding for public schools
C) air pollution controls
D) agriculture subsidies
E) tax policy

Question 14

The ________ is a market-based system of pollution control whereby individual businesses can buy and sell emission credits even while the total level of industry pollution is capped at some level.

A) cap and trade system
B) priority shift system
C) pollution credits transfer system
D) trade up system
E) None of these answers is correct.

Question 15

What is the first step in the policymaking process?

A) policy formation
B) agenda setting
C) problem recognition
D) policy adoption
E) policy evaluation

Question 16

In its early stages, policy evaluation is primarily carried out by

A) bureaucracies.
B) the president.
C) congressional committees.
D) interest groups.
E) the public.

Question 17

A milestone in the modern environmentalist movement was the publication of the book Silent Spring, by

A) John Muir.
B) John Audubon.
C) Rachel Carson.
D) Ralph Nader.
E) James Watt.

Question 18

Which of the following definitions most completely expresses the meaning of the term public policy?

A) government actions that have a direct and tangible effect on a wide variety of citizens
B) anything the government chooses to do or not to do
C) government policies directed toward specific economic or social goals
D) any government policy that draws the support of the majority of the American people
E) government actions designed to benefit all the American people, not just particular interest groups

Question 19

Which of the following is a way that the Trump administration has proposed altering current social safety net programs?

A) fully privatizing Social Security
B) changing the food stamp program to offer actual goods instead of cash assistance for buying food
C) ending Medicare for citizens over the age of 65
D) ending the federal government's contributions to entitlement programs
E) making it easier for low-income Americas to qualify for Medicaid

Question 20

Following the 2010 BP oil spill, the president, Congress, and various government agencies had difficulty deciding on the correct actions to deal with the problem. This indicated a problem with

A) problem recognition.
B) agenda setting.
C) policy formation.
D) policy adoption.
E) policy evaluation.

Question 21

Welfare payments to needy families exemplify public policies that

A) widely disperse both costs and benefits.
B) concentrate both costs and benefits.
C) concentrate benefits while widely dispersing costs.
D) concentrate costs while widely dispersing benefits.
E) achieve widely dispersed benefits without levying any substantial cost.

Question 22

The 2013 passage of the Affordable Care Act

A) was accepted by most Republican lawmakers.
B) took place in only a few select states.
C) saw most provisions, but not all, upheld by the Supreme Court.
D) was initially opposed by most Republicans, though they have since come to support it.
E) saw a very smooth public introduction and implementation.

Question 23

Inflation is caused when

A) supply cannot keep pace with demand for goods and services.
B) supply and demand for goods and services achieve near balance.
C) taxes are raised too high.
D) high rates of unemployment prevent consumers from buying goods.
E) the government artificially curbs demand for goods and services.

Question 24

American auto companies were hit particularly hard in the most recent recession, as compared to foreign competitors, because of the additional burden of

A) a greatly deteriorated industrial infrastructure.
B) lack of access to foreign markets.
C) the inability to get a piece of government stimulus money.
D) a lack of government subsidies.
E) paying for the health care and pensions of their retired employees.

Question 25

Social safety net entitlement spending currently constitutes approximately what percentage of the federal budget?

A) 90 percent
B) 81 percent
C) 66 percent
D) 52 percent
E) 24 percent

Question 26

Which of the following statements about welfare in the United States is LEAST accurate?

A) Despite the name, not everyone who qualifies for an "entitlement" program is entitled to receive benefits; the determination is made by the availability of funding during the time period in which benefits are applied for.
B) Federal welfare was largely nonexistent before the Great Depression, and poverty was addressed primarily by local governments and private charities.
C) The 1960s witnessed an increase in welfare programs with the establishment of Medicare and Medicaid, among other initiatives.
D) In the 1990s the principal program for aiding poor families, AFDC, was reformed to impose work requirements and time limits on recipients.
E) Currently, states distribute welfare to needy citizens from funds the states receive from federal block grants.

Question 27

Economic periods known as recessions are generally marked by

A) high rates of unemployment and reduced demand for goods.
B) high rates of unemployment and high demand for goods.
C) high rates of unemployment and high prices on goods.
D) low rates of unemployment and high prices on goods.
E) low rates of unemployment and reduced demand for goods.

Question 28

Which of the following statements about international instances of carbon dioxide emissions is most accurate?

A) Although the United States emits the second-highest level of carbon dioxide globally, it is not among the top ten highest polluters in per capita rates of carbon dioxide emissions.
B) The United States produces the same amount of carbon dioxide as the entire continent of Africa.
C) The per capita rate of carbon dioxide emissions in the United States is the highest in the world.
D) The total carbon dioxide emissions of the United States is projected to double by 2035.
E) With the help of EPA restrictions, the total carbon dioxide emissions of the United States are expected to drop by 30 percent by 2035.

Question 29

One significant problem with the implementation of supply-side economic policies under both Reagan and George W. Bush was that

A) government spending was allowed to increase despite declines in government revenues.
B) promised tax cuts were never delivered, leading to a decline in consumer confidence.
C) decreased government spending lowered the demand for goods, offsetting the effect of tax rebates.
D) the American people are not generally supportive of lowering taxes.
E) the federal deficit was allowed to drop too low, resulting in an inflationary economy.

Question 30

Ronald Reagan's policy of supply-side economics included

A) putting Keynesian principles into actual practice.
B) raising taxes to combat excessive inflation.
C) decreasing industrial regulation so that companies could sell goods more cheaply.
D) providing government subsidies to private businesses that met certain regulatory standards.
E) increasing government spending in order to stimulate the economy.

Question 31

The largest source of federal revenue is

A) excise taxes.
B) individual income taxes.
C) payroll taxes.
D) corporate income taxes.
E) customs duties.

Question 32

Which nation will probably produce the highest absolute levels of carbon dioxide emissions fifteen years from now?

A) Brazil
B) China
C) Japan
D) United States
E) Mexico

Question 33

Which of the following statements about American budgetary deficits is most accurate?

A) Foreign investors are legally prohibited from purchasing U.S. Treasury bonds.
B) Over the past thirty years, the deficit has risen sharply when Democrats controlled the White House and dropped precipitously when Republicans controlled it.
C) The budgetary deficit today is about 4 percent of GDP.
D) The current deficit is substantially lower than it was in 2009.
E) Treasury bonds are increasingly difficult to sell, as they provide low returns, and the government has defaulted on them repeatedly in the past forty years.

Question 34

The second-largest source of federal revenue is

A) excise taxes.
B) individual income taxes.
C) payroll taxes.
D) corporate income taxes.
E) customs duties.

Question 35

Which of the following was NOT a contributing factor in creating the Great Depression of the 1930s?

A) bank failures
B) industrial underproduction
C) overspeculation in the stock market
D) international trade restrictions
E) low wages

Question 36

The Affordable Care Act

A) requires only those actually employed to have health insurance.
B) provides financial assistance to those who cannot afford insurance premiums.
C) does not involve state governments in its implementation.
D) was declared unconstitutional by the Supreme Court in 2012.
E) was supported by most Republicans in Congress.

Question 37

Which of the following statements about poverty in the United States is LEAST accurate?

A) The poverty rate in 2016 was less than half of what it was in the 1950s.
B) The group with the highest absolute numbers of people living in poverty is white adults between the ages of 18 and 64.
C) The 2016 poverty threshold for a family of four was $24,563.
D) There are far more adults over the age of 64 living in poverty than adults below the age of 64.
E) The highest rates of poverty occur among children, minorities, and urban populations.

Question 38

The 2007 recession was triggered primarily by

A) a steep drop in the stock market that caused the savings of many ordinary Americans to evaporate.
B) bad loans made by the government and private banks to large but inefficient companies.
C) an unwillingness of American consumers to borrow money.
D) poor government regulation of a banking industry that made mortgage loans to people who couldn't repay them.
E) problems with major European economies that lessened the ability of American companies to export goods to Europe.

Question 39

How has the Trump administration responded to the ACA?

A) It repealed the ACA.
B) It replaced the ACA with a fully privatized system.
C) It increased federal budgetary commitments to operation of the ACA.
D) It forced about five million people insured under the ACA off its rolls.
E) It adopted a number of proposals designed to weaken the ACA.

Question 40

What did Fed chair Ben Bernanke use TARP money to do?

A) purchase large amounts of foreclosed homes on behalf of owners that could not pay adjustable-rate mortgages
B) purchase large insurance companies deemed "too big to fail"
C) stabilize interest rates
D) put money into the hands of homeowners in threat of foreclosure
E) bail out banks in danger of failing

Question 41

Which of the following statements about America's federal monetary policy is LEAST accurate?

A) The officials most responsible for determining America's monetary policy are neither elected by the people nor accountable to its elected bodies.
B) Every bank chartered by the federal government or by a state must belong to the Federal Reserve System.
C) Banks that join the Federal Reserve receive access to a number of benefits, including the right to borrow money at attractive rates.
D) The Federal Reserve controls the supply of money in the American economy, increasing it to combat recession, and shrinking it in response to inflationary trends.
E) The Federal Reserve System has a complex structure that includes a seven-member board of governors and twelve regional banks.

Question 42

Describe the measures the federal government has adopted to protect the environment. How do these measures distribute costs and benefits? Do they place onerous burdens on American businesses or do they allow those businesses too much latitude? Can local governments adequately address environmental problems, or do these problems require international solutions?

Question 43

One means by which the Fed affects the American economy is by

A) drafting the budget for the federal government.
B) requiring banks to hold a specific sum of money in reserve.
C) printing new money when supply runs low.
D) imposing new taxes on American citizens.
E) investing the national reserves in blue chip stocks.

Question 44

FOMC-implemented changes in the federal funds rate generally affect which of the following?

A) the amount of reserve cash a bank must keep on hand
B) consumer loans for things like automobiles and credit card purchases
C) the interest rate at which manufacturers can borrow money for investment in their own businesses
D) corporate loans for investment in the bond market
E) the rate at which the federal government can repay its debts

Question 45

Which means does the Fed most frequently employ to regulate the money supply?

A) changing the reserve requirement ratio
B) changing the discount rate
C) engaging in open market operations
D) changing the fed funds rate
E) printing new money

Question 46

Describe the general process of public policy formation. How does public policy evolve from the recognition of a problem to the implementation of an effective solution? Can a system of public policy formation be perfected? How can the government adequately assess all potential problems and manage its resources to deal with as many as possible? Must the government necessarily overlook or underfund certain problems? To put it another way, do Americans expect too much from the national government?

Question 47

Discuss the challenges presented by an increasingly global economy. Should the United States commit itself to free trade, or should it provide protections for the domestic industries on which its citizens depend? How much say should international organizations such as the WTO have in determining America's economic policies? Do the trends of economic globalization and possible environmental catastrophe make it inevitable that the United States will have to forfeit some degree of its sovereignty in the near future?

Question 48

Use the 2010 Deepwater Horizon oil spill in the Gulf of Mexico to illustrate the different steps of the policymaking process. First describe the spill itself, and then describe the specific steps taken by President Obama and Congress to deal with the disaster.

Question 49

Wealth and income inequality is an important issue in America. How do the rich, the middle class, and the poor compare in terms of wealth and income? How has this changed in recent decades? Has one group done comparatively better than the others? Finally, how does this wealth and income inequality measure up to key American values?

Question 50

When the Fed sells a bond, it

A) removes money from circulation, equivalent to the value of the bond.
B) deposits the money it receives from the sale in one of its member banks.
C) invests the proceeds in the stock market to aid economic development.
D) increases the amount of money available to make loans and buy goods.
E) uses the profits to decrease the federal debt.

Question 51

The International Monetary Fund

A) is responsible for keeping international credit markets operating.
B) is responsible for adjudicating international trade disputes.
C) is responsible for negotiating international trade agreements.
D) makes loans to help promote economic growth in developing nations.
E) monitors compliance with existing international trade agreements.

Question 52

Under which of the following presidents did the federal government actually have a government surplus?

A) Ronald Reagan, a Republican
B) George H. W. Bush, a Republican
C) Bill Clinton, a Democrat
D) George W. Bush, a Republican
E) Barack Obama, a Democrat

Question 53

What steps have been taken at the national and international level to address the threat of climate change? What are the political difficulties faced by policymakers in this struggle?

Question 54

Discuss the state of antipoverty programs in the United States today. What is the history of these programs and how have they changed in recent years? Have these changes been effective? What areas of social need have not been adequately addressed? What are the financial costs of maintaining the current social safety net? What would be the social cost of removing it or reducing it?

Question 55

Which of the following statements about the Federal Reserve is most accurate?

A) It rarely has any contact with Congress or any other representative body.
B) It was created during the Great Depression as part of Franklin Roosevelt's New Deal program.
C) It was created shortly after the ratification of the Constitution.
D) It is one of the few branches of government fully controlled by the people.
E) It is better equipped to respond to inflation than to reverse a recession.

Question 56

Which of the following statements about global economic policy is LEAST accurate?

A) With the ratification of NAFTA, the United States became part of the world's largest free trade zone.
B) Many economists argue that once-popular protectionist policies lead to recessions and sometimes full depressions.
C) Protestors have argued that globalization, especially as directed by international organizations such as the WTO, undermine regional sovereignty and representative democracy.
D) The United States has suffered the loss of many jobs in the manufacturing sector as a result of globalization, though some U.S. exports have benefitted.
E) The U.S. generally refuses to work with the WTO to promote global economic stability.

Question 57

During the recent financial crisis, Fed chairman Ben Bernanke implemented quantitative easing, a procedure by which the Fed

A) floods the markets with additional reserves it creates.
B) lowers interest rates.
C) lowers the reserve requirement ratio.
D) raises the discount rate.
E) buys government securities.

Question 58

What caused the recession that began in 2007? How did the Federal Reserve, the president, and Congress attempt to deal with the most serious economic downturn since the Great Depression? How successful were these attempts? What changes were made to prevent a similar recession in the future?

Question 59

Discuss the role of the Federal Reserve in the American economy. What are the Fed's specific functions? What are the tools at its disposal? How did the Fed originate and how is it staffed? Should an institution that is not controlled by the people, and which is not fully an instrument of government, be allowed to wield as much influence as the Fed does?