Deck 15: Domestic Policy

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Question
All of the following are key participants in developing proposed legislation EXCEPT

A) the president.
B) members of Congress.
C) administrative agencies.
D) individual citizens.
E) interest group leaders.
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Question
Every bill that passes through Congress is an opportunity for individual lawmakers to

A) prove their worth to their parties.
B) set national economic policy.
C) help those who financially contributed to their campaigns.
D) influence the nation's foreign policy priorities.
E) solicit money from special interest groups.
Question
The procedures used to get an issue on the political agenda, formulate policy, and evaluate results is known as _____.

A) policymaking
B) agenda setting
C) domestic policy
D) foreign policy
E) issue identification
Question
is a joint federal-state program that provides health-care insurance for children in families with incomes that are modest.

A) Medicare
B) The Children's Health Insurance Program (CHIP)
C) The Patient Protection and Affordable Care Act
D) The Health Insurance Exchange
E) Social Security
Question
When President Obama took office, the government was picking up the tab for about of the nation's health­ care costs.

A) 14 percent
B) 27 percent
C) 39 percent
D) 50 percent
E) 74 percent
Question
Medicaid is the federal government's health­care program for

A) children in families with modest incomes.
B) members of Congress.
C) low-income persons.
D) those who have no private health-care insurance.
E) persons sixty-five years of age and older.
Question
The second stage in the policymaking process involves

A) issue identification.
B) agenda setting.
C) policy implementation.
D) the formulation and adoption of specific plans for achieving a particular goal.
E) policy evaluation.
Question
The final stage of policymaking involves

A) issue identification.
B) agenda setting.
C) the implementation of policies.
D) the formulation and adoption of specific plans for achieving a particular goal.
E) evaluating the success of a policy.
Question
All of the following are parts of the policymaking process EXCEPT

A) issue identification.
B) agenda setting.
C) policy evaluation.
D) issue fabrication.
E) policy formulation.
Question
In 1970, the U.S. incarceration rate was what it is today.

A) one-half
B) one-fifth
C) three-quarters
D) one-tenth
E) one-fourth
Question
Because of our federal system, the national policies necessarily requires the cooperation of the federal government and the various state and local governments.

A) identification of issues to be addressed by
B) the adoption of
C) implementation of
D) formulation of
E) evaluation of
Question
A discussion by politicians or other commentators about a problem that can be solved politically is an example of

A) policy adoption.
B) policy evaluation.
C) issue identification.
D) policy formulation.
E) policy implementation.
Question
In the United States, roughly one in every adults is in prison or jail.

A) fifty
B) one hundred
C) three hundred
D) seven hundred
E) one thousand
Question
Issue identification and agenda setting are part of the

A) first stage of the policymaking process.
B) second stage of the policymaking process.
C) third stage of the policymaking process.
D) fourth stage of the policymaking process.
E) preliminary stage of the policymaking process.
Question
is a joint federal-state program that provides health-care subsidies to Americans aged 65 and older.

A) Medicare
B) The Children's Health Insurance Program (CHIP)
C) The Patient Protection and Affordable Care Act
D) Medicaid
E) National Health Insurance
Question
In California, more than 4,000 individuals are serving life sentences because

A) they were convicted of a third offense.
B) they were convicted of murder.
C) they waived their right to a jury trial.
D) of drug trafficking.
E) they were involved in gang activity.
Question
Even before Congress passed the Patient Protection and Affordable Care Act and a companion bill in 2010, the federal government was paying the health-care costs of more than million Americans.

A) 6
B) 14
C) 36
D) 61
E) 100
Question
Domestic policy is best defined as

A) public policy concerning matters of foreign affairs.
B) public policy concerning all issues within a national unit.
C) policy that focuses on families and households.
D) policy that encompasses economic matters.
E) the policies that concern domestic workers, such as maids and caregivers.
Question
When scholars and scientists conduct studies to determine whether a law has achieved the desired results, they are engaging in

A) policy adoption.
B) issue identification and agenda setting.
C) policy implementation.
D) policy formulation.
E) policy evaluation.
Question
The share of the U.S. population in prison is times more than that of Japan.

A) five
B) nine
C) thirteen
D) eighteen
E) twenty
Question
Public opinion polls taken in 2010 revealed that only of Americans believed that global warming is the result of human activities.

A) one-half
B) one-fourth
C) two-thirds
D) one-third
E) three-fourths
Question
Under the (CAFE) standards, each vehicle manufacturer (or the industry as a whole) must meet a miles-per- gallon benchmark averaged across all new cars and trucks.

A) Compact Auto Fuel Efficiency
B) Consistent Average Fuel Energy
C) Corporate Average Fuel Economy
D) Car and Four-by-Four Energy
E) Collaborative Auto and Fuel Economy
Question
One immediate change brought about by the health-care reform bills that passed in 2010 was that young people can remain covered by their parents' insurance until they turn

A) 16 years old.
B) 18 years old.
C) 21 years old.
D) 26 years old.
E) 30 years old.
Question
By 2012, low natural gas prices and new pollution regulations made uncompetitive as a source of electricity.

A) liquid natural gas
B) coal
C) gasoline
D) crude oil
E) fuel oil
Question
In 2012, the Obama administration issued new rules that raised fuel efficiency standards. By 2025, the nation's combined fleet of new cars and trucks must have an average fuel efficiency of miles per gallon.

A) 28.5
B) 30
C) 39
D) 54.5
E) 65
Question
All of the following receive medical services directly from the government EXCEPT

A) veterans.
B) Native Americans.
C) students.
D) teachers.
E) members of the armed forces.
Question
is a technique for extracting oil or natural gas from underground rock by the high-power injection of a mixture of water, sand, and chemicals.

A) Cracking
B) Fracking
C) Dredging
D) Plowing
E) Spelunking
Question
The costs of medicare are expected to soar over the next two decades as

A) millions of baby boomers retire.
B) population growth outpaces the growth in the job market.
C) population growth outpaces GDP growth.
D) people are brought into the health-care system under Obamacare.
E) Obama's stimulus packages expire.
Question
Social Security, Medicare, and Medicaid are

A) health-care policies.
B) entitlement programs.
C) monetary policies.
D) fiscal policies.
E) Keynesian programs.
Question
All of the following are entitlement programs EXCEPT

A) Medicare.
B) Medicaid.
C) Social Security.
D) Unemployment Insurance.
E) CHIP.
Question
Sources of renewable energy include

A) coal.
B) natural gas.
C) oil.
D) uranium ore.
E) wind and solar power.
Question
Gas cannot be transported by ship efficiently unless it is transformed into

A) petroleum.
B) gasoline.
C) liquified natural gas.
D) tar sands.
E) crude oil.
Question
Most climatologists believe that is the result of human activities, especially the release of greenhouse gases into the atmosphere.

A) the rise in oil prices
B) a reduction in the mean annual temperature
C) global warming
D) the reduction of fisheries
E) longer life expectancy
Question
A growing concern is that technology to produce natural gas could lead to contamination of underground water sources.

A) cracking
B) drilling
C) plowing
D) fracking
E) boring
Question
About 40 percent of United States oil imports come from

A) Saudi Arabia.
B) East Asia and Europe.
C) Venezuela.
D) Canada and Mexico.
E) Iraq, Libya, Nigeria, and Russia.
Question
is now the federal government's second­largest domestic spending program, after Social Security.

A) Social Security
B) Medicare
C) The Temporary Assistance to Needy Families program
D) Food stamps
E) National health insurance
Question
is usually defined as two or more quarters of economic decline.

A) Inflation
B) Unemployment
C) Recession
D) "Pushing on a string"
E) The business cycle
Question
In a(n) , Congress establishes a binding annual budget that cannot be exceeded.

A) discretionary program
B) entitlement program
C) social compact
D) dependency program
E) continuous annual spending bill
Question
policy consists of all actions taken by the national government to address the ups and downs in the nation's level of business activity.

A) Monetary
B) Fiscal
C) Economic
D) Domestic
E) Easy-money
Question
Our nation imports of its petroleum supply.

A) 14 percent
B) 23 percent
C) 40 percent
D) 60 percent
E) 77 percent
Question
The Fed is governed by a board of seven governors, appointed by the president, who serve for

A) four-year terms.
B) six-year terms.
C) eight-year terms.
D) fourteen-year terms.
E) life.
Question
In theory, in periods of recession and high unemployment, the government should pursue a(n)

A) easy-money policy.
B) policy of doing nothing.
C) policy of higher interest rates.
D) policy that reduces the rate of growth of the money supply.
E) policy that will induce consumers to spend less and producers to invest less.
Question
policy involves changing the amount of money in circulation so as to affect interest rates, credit markets, the rate of inflation, the rate of economic growth, and the rate of unemployment.

A) Monetary
B) Fiscal
C) Debt reduction
D) Keynesian
E) Tax
Question
In periods of rising inflation, the Fed typically will

A) expand the rate of growth in the amount of money in circulation.
B) pursue an easy-money policy.
C) adopt a policy that will lead to lower interest rates, thus inducing consumers to spend more and businesses to invest more.
D) reduce the rate of growth in the amount of money in circulation.
E) do nothing.
Question
is a sustained rise in average prices.

A) Unemployment
B) Inflation
C) Recession
D) "Pushing on a string"
E) The public debt
Question
The government uses to smooth the business cycle.

A) inflation
B) deflation
C) monetary and fiscal policy
D) recession
E) import and export licenses
Question
The action-reaction syndrome suggests that for every action taken by

A) Congress, there will be a reaction by the president.
B) Democrats, there will be a reaction by Republicans.
C) the House of Representatives, there will be a reaction by the Senate.
D) the federal government, there will be a reaction by the states.
E) the government, there will be a reaction by the public.
Question
policy uses changes in government expenditures and taxes to alter national economic variables.

A) Monetary
B) Fiscal
C) Labor
D) Energy
E) Easy-money
Question
According to the nonpartisan Congressional Budget Office, more than of this nation's households pay no income taxes at all.

A) 7 percent
B) 22 percent
C) 36 percent
D) 40 percent
E) 55 percent
Question
A(n) stimulates the economy by expanding the rate of growth of the money supply.

A) recession
B) easy-money policy
C) open-market policy
D) Keynesian policy
E) tight credit policy
Question
Monetary policy is under the control of

A) Congress.
B) the House Ways and Means Committee.
C) the Federal Reserve System.
D) the Internal Revenue Service.
E) the Department of the Treasury.
Question
After the expiration of the 2009 stimulus, state and local government workers lost their jobs.

A) about a quarter million
B) very few
C) no
D) 2.1 million
E) more than half a million
Question
According to the nonpartisan Congressional Budget Office, the top 10 percent of income earners in the United States pay more than of all income taxes.

A) 30 percent
B) 42 percent
C) 55 percent
D) 64 percent
E) 70 percent
Question
The principle underlying fiscal policy suggests that when unemployment is rising and the economy is going into a recession, fiscal policy should

A) stimulate economic activity by increasing government spending, decreasing taxes, or both.
B) regulate the action-reaction syndrome.
C) let the forces of supply and demand operate on their own.
D) curb economic activity by reducing government spending.
E) curb economic activity by increasing taxes.
Question
The is an independent regulatory agency that was established by Congress as the nation's central banking system in 1913.

A) Internal Revenue Service (IRS)
B) Department of the Treasury
C) Federal Deposit Insurance Corporation (FDIC)
D) Congressional Budget Office
E) Federal Reserve System (the Fed)
Question
Alternating periods of economic growth and decline are known as

A) inflation.
B) stagflation.
C) recession.
D) "pushing on a string."
E) the business cycle.
Question
The failure of policy to spur the economy has been described as "pushing on a string."

A) fiscal
B) easy-money
C) tax
D) energy
E) Keynesian
Question
Congress is rarely able to pass tax reform legislation because all of the following groups fight to keep their tax breaks EXCEPT

A) the home-building industry.
B) businesses engaged in research and development.
C) charities.
D) the poor.
E) homeowners.
Question
The Keynesian solution to a depressed economy is for government to create by adopting a temporary spending program.

A) supply
B) need
C) inflation
D) deflation
E) demand
Question
An outcome of the action-reaction syndrome on tax laws are that allow the wealthy to reduce their taxable incomes.

A) brackets
B) reforms
C) debts
D) margins
E) loopholes
Question
The People's Republic of China accumulates U.S. dollars by

A) borrowing money from the United States.
B) importing products from the United States.
C) exporting more products to the United States than it imports from the United States.
D) buying U.S. treasuries.
E) selling U.S. treasuries.
Question
The public debt is defined as the total value of all outstanding

A) corporate borrowing.
B) federal, state, and local government borrowing.
C) federal government borrowing.
D) borrowing by the public.
E) public institution borrowing.
Question
When the U.S. government spends more than it receives, it typically finances the shortfall by selling IOUs, commonly called

A) entitlements.
B) long-term loans.
C) credit vouchers.
D) treasuries.
E) interest investments.
Question
The United States government will not go bankrupt

A) as long as it continues to supply funds for transportation, education, housing programs, and the military.
B) as long as the net public debt stays between 60 and 70 percent of the Gross Domestic Product (GDP).
C) as long as the deficit does not exceed $1.3 trillion.
D) as long as it can collect taxes to pay the interest on the public debt.
E) as long as no more than half the debt is held by foreign nations.
Question
Today, about of the U.S. net public debt is owned by foreign individuals, foreign businesses, and foreign central banks.

A) one-fourth
B) one-third
C) one-half
D) two-thirds
E) four-fifths
Question
Since 2008, the net public debt has

A) remained about the same.
B) decreased steadily.
C) decreased significantly.
D) increased slightly.
E) increased significantly.
Question
Every time there is a federal government deficit, there is a(n)

A) increase in inflation.
B) recession.
C) depression.
D) rise in unemployment.
E) increase in the total accumulated public debt.
Question
The largest foreign holder of U.S. net public debt is

A) Switzerland.
B) Russia.
C) Mexico.
D) the European Union.
E) the People's Republic of China.
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Deck 15: Domestic Policy
1
All of the following are key participants in developing proposed legislation EXCEPT

A) the president.
B) members of Congress.
C) administrative agencies.
D) individual citizens.
E) interest group leaders.
D
2
Every bill that passes through Congress is an opportunity for individual lawmakers to

A) prove their worth to their parties.
B) set national economic policy.
C) help those who financially contributed to their campaigns.
D) influence the nation's foreign policy priorities.
E) solicit money from special interest groups.
C
3
The procedures used to get an issue on the political agenda, formulate policy, and evaluate results is known as _____.

A) policymaking
B) agenda setting
C) domestic policy
D) foreign policy
E) issue identification
A
4
is a joint federal-state program that provides health-care insurance for children in families with incomes that are modest.

A) Medicare
B) The Children's Health Insurance Program (CHIP)
C) The Patient Protection and Affordable Care Act
D) The Health Insurance Exchange
E) Social Security
Unlock Deck
Unlock for access to all 68 flashcards in this deck.
Unlock Deck
k this deck
5
When President Obama took office, the government was picking up the tab for about of the nation's health­ care costs.

A) 14 percent
B) 27 percent
C) 39 percent
D) 50 percent
E) 74 percent
Unlock Deck
Unlock for access to all 68 flashcards in this deck.
Unlock Deck
k this deck
6
Medicaid is the federal government's health­care program for

A) children in families with modest incomes.
B) members of Congress.
C) low-income persons.
D) those who have no private health-care insurance.
E) persons sixty-five years of age and older.
Unlock Deck
Unlock for access to all 68 flashcards in this deck.
Unlock Deck
k this deck
7
The second stage in the policymaking process involves

A) issue identification.
B) agenda setting.
C) policy implementation.
D) the formulation and adoption of specific plans for achieving a particular goal.
E) policy evaluation.
Unlock Deck
Unlock for access to all 68 flashcards in this deck.
Unlock Deck
k this deck
8
The final stage of policymaking involves

A) issue identification.
B) agenda setting.
C) the implementation of policies.
D) the formulation and adoption of specific plans for achieving a particular goal.
E) evaluating the success of a policy.
Unlock Deck
Unlock for access to all 68 flashcards in this deck.
Unlock Deck
k this deck
9
All of the following are parts of the policymaking process EXCEPT

A) issue identification.
B) agenda setting.
C) policy evaluation.
D) issue fabrication.
E) policy formulation.
Unlock Deck
Unlock for access to all 68 flashcards in this deck.
Unlock Deck
k this deck
10
In 1970, the U.S. incarceration rate was what it is today.

A) one-half
B) one-fifth
C) three-quarters
D) one-tenth
E) one-fourth
Unlock Deck
Unlock for access to all 68 flashcards in this deck.
Unlock Deck
k this deck
11
Because of our federal system, the national policies necessarily requires the cooperation of the federal government and the various state and local governments.

A) identification of issues to be addressed by
B) the adoption of
C) implementation of
D) formulation of
E) evaluation of
Unlock Deck
Unlock for access to all 68 flashcards in this deck.
Unlock Deck
k this deck
12
A discussion by politicians or other commentators about a problem that can be solved politically is an example of

A) policy adoption.
B) policy evaluation.
C) issue identification.
D) policy formulation.
E) policy implementation.
Unlock Deck
Unlock for access to all 68 flashcards in this deck.
Unlock Deck
k this deck
13
In the United States, roughly one in every adults is in prison or jail.

A) fifty
B) one hundred
C) three hundred
D) seven hundred
E) one thousand
Unlock Deck
Unlock for access to all 68 flashcards in this deck.
Unlock Deck
k this deck
14
Issue identification and agenda setting are part of the

A) first stage of the policymaking process.
B) second stage of the policymaking process.
C) third stage of the policymaking process.
D) fourth stage of the policymaking process.
E) preliminary stage of the policymaking process.
Unlock Deck
Unlock for access to all 68 flashcards in this deck.
Unlock Deck
k this deck
15
is a joint federal-state program that provides health-care subsidies to Americans aged 65 and older.

A) Medicare
B) The Children's Health Insurance Program (CHIP)
C) The Patient Protection and Affordable Care Act
D) Medicaid
E) National Health Insurance
Unlock Deck
Unlock for access to all 68 flashcards in this deck.
Unlock Deck
k this deck
16
In California, more than 4,000 individuals are serving life sentences because

A) they were convicted of a third offense.
B) they were convicted of murder.
C) they waived their right to a jury trial.
D) of drug trafficking.
E) they were involved in gang activity.
Unlock Deck
Unlock for access to all 68 flashcards in this deck.
Unlock Deck
k this deck
17
Even before Congress passed the Patient Protection and Affordable Care Act and a companion bill in 2010, the federal government was paying the health-care costs of more than million Americans.

A) 6
B) 14
C) 36
D) 61
E) 100
Unlock Deck
Unlock for access to all 68 flashcards in this deck.
Unlock Deck
k this deck
18
Domestic policy is best defined as

A) public policy concerning matters of foreign affairs.
B) public policy concerning all issues within a national unit.
C) policy that focuses on families and households.
D) policy that encompasses economic matters.
E) the policies that concern domestic workers, such as maids and caregivers.
Unlock Deck
Unlock for access to all 68 flashcards in this deck.
Unlock Deck
k this deck
19
When scholars and scientists conduct studies to determine whether a law has achieved the desired results, they are engaging in

A) policy adoption.
B) issue identification and agenda setting.
C) policy implementation.
D) policy formulation.
E) policy evaluation.
Unlock Deck
Unlock for access to all 68 flashcards in this deck.
Unlock Deck
k this deck
20
The share of the U.S. population in prison is times more than that of Japan.

A) five
B) nine
C) thirteen
D) eighteen
E) twenty
Unlock Deck
Unlock for access to all 68 flashcards in this deck.
Unlock Deck
k this deck
21
Public opinion polls taken in 2010 revealed that only of Americans believed that global warming is the result of human activities.

A) one-half
B) one-fourth
C) two-thirds
D) one-third
E) three-fourths
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Unlock for access to all 68 flashcards in this deck.
Unlock Deck
k this deck
22
Under the (CAFE) standards, each vehicle manufacturer (or the industry as a whole) must meet a miles-per- gallon benchmark averaged across all new cars and trucks.

A) Compact Auto Fuel Efficiency
B) Consistent Average Fuel Energy
C) Corporate Average Fuel Economy
D) Car and Four-by-Four Energy
E) Collaborative Auto and Fuel Economy
Unlock Deck
Unlock for access to all 68 flashcards in this deck.
Unlock Deck
k this deck
23
One immediate change brought about by the health-care reform bills that passed in 2010 was that young people can remain covered by their parents' insurance until they turn

A) 16 years old.
B) 18 years old.
C) 21 years old.
D) 26 years old.
E) 30 years old.
Unlock Deck
Unlock for access to all 68 flashcards in this deck.
Unlock Deck
k this deck
24
By 2012, low natural gas prices and new pollution regulations made uncompetitive as a source of electricity.

A) liquid natural gas
B) coal
C) gasoline
D) crude oil
E) fuel oil
Unlock Deck
Unlock for access to all 68 flashcards in this deck.
Unlock Deck
k this deck
25
In 2012, the Obama administration issued new rules that raised fuel efficiency standards. By 2025, the nation's combined fleet of new cars and trucks must have an average fuel efficiency of miles per gallon.

A) 28.5
B) 30
C) 39
D) 54.5
E) 65
Unlock Deck
Unlock for access to all 68 flashcards in this deck.
Unlock Deck
k this deck
26
All of the following receive medical services directly from the government EXCEPT

A) veterans.
B) Native Americans.
C) students.
D) teachers.
E) members of the armed forces.
Unlock Deck
Unlock for access to all 68 flashcards in this deck.
Unlock Deck
k this deck
27
is a technique for extracting oil or natural gas from underground rock by the high-power injection of a mixture of water, sand, and chemicals.

A) Cracking
B) Fracking
C) Dredging
D) Plowing
E) Spelunking
Unlock Deck
Unlock for access to all 68 flashcards in this deck.
Unlock Deck
k this deck
28
The costs of medicare are expected to soar over the next two decades as

A) millions of baby boomers retire.
B) population growth outpaces the growth in the job market.
C) population growth outpaces GDP growth.
D) people are brought into the health-care system under Obamacare.
E) Obama's stimulus packages expire.
Unlock Deck
Unlock for access to all 68 flashcards in this deck.
Unlock Deck
k this deck
29
Social Security, Medicare, and Medicaid are

A) health-care policies.
B) entitlement programs.
C) monetary policies.
D) fiscal policies.
E) Keynesian programs.
Unlock Deck
Unlock for access to all 68 flashcards in this deck.
Unlock Deck
k this deck
30
All of the following are entitlement programs EXCEPT

A) Medicare.
B) Medicaid.
C) Social Security.
D) Unemployment Insurance.
E) CHIP.
Unlock Deck
Unlock for access to all 68 flashcards in this deck.
Unlock Deck
k this deck
31
Sources of renewable energy include

A) coal.
B) natural gas.
C) oil.
D) uranium ore.
E) wind and solar power.
Unlock Deck
Unlock for access to all 68 flashcards in this deck.
Unlock Deck
k this deck
32
Gas cannot be transported by ship efficiently unless it is transformed into

A) petroleum.
B) gasoline.
C) liquified natural gas.
D) tar sands.
E) crude oil.
Unlock Deck
Unlock for access to all 68 flashcards in this deck.
Unlock Deck
k this deck
33
Most climatologists believe that is the result of human activities, especially the release of greenhouse gases into the atmosphere.

A) the rise in oil prices
B) a reduction in the mean annual temperature
C) global warming
D) the reduction of fisheries
E) longer life expectancy
Unlock Deck
Unlock for access to all 68 flashcards in this deck.
Unlock Deck
k this deck
34
A growing concern is that technology to produce natural gas could lead to contamination of underground water sources.

A) cracking
B) drilling
C) plowing
D) fracking
E) boring
Unlock Deck
Unlock for access to all 68 flashcards in this deck.
Unlock Deck
k this deck
35
About 40 percent of United States oil imports come from

A) Saudi Arabia.
B) East Asia and Europe.
C) Venezuela.
D) Canada and Mexico.
E) Iraq, Libya, Nigeria, and Russia.
Unlock Deck
Unlock for access to all 68 flashcards in this deck.
Unlock Deck
k this deck
36
is now the federal government's second­largest domestic spending program, after Social Security.

A) Social Security
B) Medicare
C) The Temporary Assistance to Needy Families program
D) Food stamps
E) National health insurance
Unlock Deck
Unlock for access to all 68 flashcards in this deck.
Unlock Deck
k this deck
37
is usually defined as two or more quarters of economic decline.

A) Inflation
B) Unemployment
C) Recession
D) "Pushing on a string"
E) The business cycle
Unlock Deck
Unlock for access to all 68 flashcards in this deck.
Unlock Deck
k this deck
38
In a(n) , Congress establishes a binding annual budget that cannot be exceeded.

A) discretionary program
B) entitlement program
C) social compact
D) dependency program
E) continuous annual spending bill
Unlock Deck
Unlock for access to all 68 flashcards in this deck.
Unlock Deck
k this deck
39
policy consists of all actions taken by the national government to address the ups and downs in the nation's level of business activity.

A) Monetary
B) Fiscal
C) Economic
D) Domestic
E) Easy-money
Unlock Deck
Unlock for access to all 68 flashcards in this deck.
Unlock Deck
k this deck
40
Our nation imports of its petroleum supply.

A) 14 percent
B) 23 percent
C) 40 percent
D) 60 percent
E) 77 percent
Unlock Deck
Unlock for access to all 68 flashcards in this deck.
Unlock Deck
k this deck
41
The Fed is governed by a board of seven governors, appointed by the president, who serve for

A) four-year terms.
B) six-year terms.
C) eight-year terms.
D) fourteen-year terms.
E) life.
Unlock Deck
Unlock for access to all 68 flashcards in this deck.
Unlock Deck
k this deck
42
In theory, in periods of recession and high unemployment, the government should pursue a(n)

A) easy-money policy.
B) policy of doing nothing.
C) policy of higher interest rates.
D) policy that reduces the rate of growth of the money supply.
E) policy that will induce consumers to spend less and producers to invest less.
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43
policy involves changing the amount of money in circulation so as to affect interest rates, credit markets, the rate of inflation, the rate of economic growth, and the rate of unemployment.

A) Monetary
B) Fiscal
C) Debt reduction
D) Keynesian
E) Tax
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44
In periods of rising inflation, the Fed typically will

A) expand the rate of growth in the amount of money in circulation.
B) pursue an easy-money policy.
C) adopt a policy that will lead to lower interest rates, thus inducing consumers to spend more and businesses to invest more.
D) reduce the rate of growth in the amount of money in circulation.
E) do nothing.
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45
is a sustained rise in average prices.

A) Unemployment
B) Inflation
C) Recession
D) "Pushing on a string"
E) The public debt
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k this deck
46
The government uses to smooth the business cycle.

A) inflation
B) deflation
C) monetary and fiscal policy
D) recession
E) import and export licenses
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k this deck
47
The action-reaction syndrome suggests that for every action taken by

A) Congress, there will be a reaction by the president.
B) Democrats, there will be a reaction by Republicans.
C) the House of Representatives, there will be a reaction by the Senate.
D) the federal government, there will be a reaction by the states.
E) the government, there will be a reaction by the public.
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48
policy uses changes in government expenditures and taxes to alter national economic variables.

A) Monetary
B) Fiscal
C) Labor
D) Energy
E) Easy-money
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49
According to the nonpartisan Congressional Budget Office, more than of this nation's households pay no income taxes at all.

A) 7 percent
B) 22 percent
C) 36 percent
D) 40 percent
E) 55 percent
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k this deck
50
A(n) stimulates the economy by expanding the rate of growth of the money supply.

A) recession
B) easy-money policy
C) open-market policy
D) Keynesian policy
E) tight credit policy
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k this deck
51
Monetary policy is under the control of

A) Congress.
B) the House Ways and Means Committee.
C) the Federal Reserve System.
D) the Internal Revenue Service.
E) the Department of the Treasury.
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k this deck
52
After the expiration of the 2009 stimulus, state and local government workers lost their jobs.

A) about a quarter million
B) very few
C) no
D) 2.1 million
E) more than half a million
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k this deck
53
According to the nonpartisan Congressional Budget Office, the top 10 percent of income earners in the United States pay more than of all income taxes.

A) 30 percent
B) 42 percent
C) 55 percent
D) 64 percent
E) 70 percent
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k this deck
54
The principle underlying fiscal policy suggests that when unemployment is rising and the economy is going into a recession, fiscal policy should

A) stimulate economic activity by increasing government spending, decreasing taxes, or both.
B) regulate the action-reaction syndrome.
C) let the forces of supply and demand operate on their own.
D) curb economic activity by reducing government spending.
E) curb economic activity by increasing taxes.
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k this deck
55
The is an independent regulatory agency that was established by Congress as the nation's central banking system in 1913.

A) Internal Revenue Service (IRS)
B) Department of the Treasury
C) Federal Deposit Insurance Corporation (FDIC)
D) Congressional Budget Office
E) Federal Reserve System (the Fed)
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56
Alternating periods of economic growth and decline are known as

A) inflation.
B) stagflation.
C) recession.
D) "pushing on a string."
E) the business cycle.
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k this deck
57
The failure of policy to spur the economy has been described as "pushing on a string."

A) fiscal
B) easy-money
C) tax
D) energy
E) Keynesian
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k this deck
58
Congress is rarely able to pass tax reform legislation because all of the following groups fight to keep their tax breaks EXCEPT

A) the home-building industry.
B) businesses engaged in research and development.
C) charities.
D) the poor.
E) homeowners.
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k this deck
59
The Keynesian solution to a depressed economy is for government to create by adopting a temporary spending program.

A) supply
B) need
C) inflation
D) deflation
E) demand
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k this deck
60
An outcome of the action-reaction syndrome on tax laws are that allow the wealthy to reduce their taxable incomes.

A) brackets
B) reforms
C) debts
D) margins
E) loopholes
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k this deck
61
The People's Republic of China accumulates U.S. dollars by

A) borrowing money from the United States.
B) importing products from the United States.
C) exporting more products to the United States than it imports from the United States.
D) buying U.S. treasuries.
E) selling U.S. treasuries.
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k this deck
62
The public debt is defined as the total value of all outstanding

A) corporate borrowing.
B) federal, state, and local government borrowing.
C) federal government borrowing.
D) borrowing by the public.
E) public institution borrowing.
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k this deck
63
When the U.S. government spends more than it receives, it typically finances the shortfall by selling IOUs, commonly called

A) entitlements.
B) long-term loans.
C) credit vouchers.
D) treasuries.
E) interest investments.
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k this deck
64
The United States government will not go bankrupt

A) as long as it continues to supply funds for transportation, education, housing programs, and the military.
B) as long as the net public debt stays between 60 and 70 percent of the Gross Domestic Product (GDP).
C) as long as the deficit does not exceed $1.3 trillion.
D) as long as it can collect taxes to pay the interest on the public debt.
E) as long as no more than half the debt is held by foreign nations.
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k this deck
65
Today, about of the U.S. net public debt is owned by foreign individuals, foreign businesses, and foreign central banks.

A) one-fourth
B) one-third
C) one-half
D) two-thirds
E) four-fifths
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k this deck
66
Since 2008, the net public debt has

A) remained about the same.
B) decreased steadily.
C) decreased significantly.
D) increased slightly.
E) increased significantly.
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k this deck
67
Every time there is a federal government deficit, there is a(n)

A) increase in inflation.
B) recession.
C) depression.
D) rise in unemployment.
E) increase in the total accumulated public debt.
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k this deck
68
The largest foreign holder of U.S. net public debt is

A) Switzerland.
B) Russia.
C) Mexico.
D) the European Union.
E) the People's Republic of China.
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Unlock Deck
Unlock for access to all 68 flashcards in this deck.