Deck 17: Domestic Policies

Question 1

The Social Security program was adopted during what event or period?

A) the Vietnam War
B) Watergate
C) the Reagan administration
D) the Great Society
E) the Great Depression

Answer 1

E

Question 2

Medicare is a program in which policy area?

A) welfare policy
B) health policy
C) education policy
D) environmental policy
E) foreign policy

Answer 2

B

Question 3

According to the chairman of the Federal Reserve, Ben Bernanke, which of the following contributed the most to the 2008 U.S. financial collapse?

A) the September 11, 2001, terrorist attacks
B) the election of Barack Obama
C) deregulation of the financial industry
D) the price of oil
E) the balance-of-trade deficit

Answer 3

C

Question 4

Which is true of presidents dealing with economic crises?

A) Both Democratic and Republican presidents have taken actions to stimulate the economy.
B) Democratic presidents have taken actions to stimulate the economy, but Republican presidents have not.
C) Republican presidents have taken actions to stimulate the economy, but Democratic presidents have not.
D) Neither Democratic nor Republican presidents have taken actions to stimulate the economy.
E) No presidents have had to deal with economic crises.

Question 5

Which of the following entities is responsible for setting interest rates in the United States?

A) the Congress
B) the Congressional Budget Office
C) the Executive Office of the President
D) the Federal Reserve Board
E) the Office of Management and Budget

Question 6

The Affordable Care Act, colloquially known as Obamacare, deals primarily with what policy area?

A) education
B) health care
C) welfare
D) economics
E) criminal justice

Question 7

What do economists use gross domestic product to measure?

A) the rate of government spending in the economy
B) the rate of tariffs applied to goods imported into the United States
C) the total impact of import revenues on the domestic economy
D) the total value added by government expenditures in the economy
E) the total value of goods and services produced in the economy

Question 8

Which of the following pieces of legislation is most likely to ensure that poor people have health insurance?

A) the Affordable Care Act, colloquially known as Obamacare
B) the Social Security Act
C) Medicare
D) Medicaid
E) the American Recovery and Reinvestment Act

Question 9

Food stamps/vouchers generally fall within which policy area?

A) education
B) criminal justice
C) welfare
D) health care
E) environment

Question 10

What is the main purpose of monetary policy?

A) to affect how much money is available to businesses and banks
B) to control the amount of public debt sold to foreign states
C) to control the interest rates on money lent to foreign states
D) to equalize income disparity among citizens of the United States
E) to expand the government's revenue base so as to reduce the deficit

Question 11

Inflation is best understood as the rate at which __________.

A) gross domestic product expands
B) prices for goods and services decrease and purchasing power is increased
C) prices for goods and services increase and purchasing power is reduced
D) the federal government increases taxes to raise revenue
E) the Federal Reserve Board expands the money supply

Question 12

Payroll taxes are earmarked for __________.

A) Temporary Assistance for Needy Families
B) Obamacare and Medicaid
C) Social Security and Medicare
D) unemployment insurance
E) personal retirement savings accounts

Question 13

What has happened to the poverty rate in the United States since the 1970s?

A) It has steeply declined.
B) It has trended downward.
C) It has steeply increased.
D) It has trended upward.
E) It has remained relatively constant.

Question 14

Social Security is aimed at what group of people?

A) children
B) business owners
C) seniors
D) the poor
E) college students

Question 15

Which of the following is a means-tested program?

A) Social Security
B) No Child Left Behind
C) Medicare
D) Temporary Assistance for Needy Families
E) the Elementary and Secondary Education Act

Question 16

Which of these resulted from the Great Depression?

A) The federal government cut Social Security benefits because it lacked adequate funds.
B) The federal government assumed new responsibilities for the management of economic matters.
C) The states assumed new responsibilities for the management of national economic matters.
D) The federal government devolved responsibility for solving the economic crisis to the states.
E) The federal government took a laissez-faire approach when dealing with economic matters.

Question 17

Which of the following statements regarding the role of the federal government in the economy is correct?

A) Economic regulation of industry is the sole responsibility of the secretary of the treasury.
B) Most Americans would prefer an economy completely free of any federal regulations.
C) Since the Great Recession, the scope of federal activity in the economy has contracted.
D) The U.S. Constitution restricts direct regulation of the economy to state governments.
E) Presidential election outcomes are heavily influenced by the health of the economy.

Question 18

A severe and persistent drop in economic activity is known as a(n) __________.

A) depression
B) flat line cycle
C) inflationary cycle
D) secession
E) recession

Question 19

A government active in regulating the economy would most likely be favored by which group?

A) white men
B) Southerners
C) Republicans
D) Libertarians
E) Democrats

Question 20

Which of the following best reflects the current Republican view regarding national involvement in ensuring health care coverage?

A) Republicans have called for the repeal of the Affordable Care Act, colloquially known as Obamacare.
B) Republicans have called for improvements to the Affordable Care Act, colloquially known as Obamacare.
C) Republicans intend to replace the Affordable Care Act, colloquially known as Obamacare, with a single-payer system.
D) Republicans have avoided taking a position on health care.
E) Republicans were initially against the Affordable Care Act, colloquially known as Obamacare, but they now support it.

Question 21

Which of the following is most accurate regarding the future of Social Security?

A) Social Security will likely need adjustments to meet future demands.
B) Social Security is expected to run out of money by 2014.
C) Social Security is expected to be financially stable for the next 50 years.
D) Social Security is expected to be financially stable for the next 100 years.
E) Social Security will be replaced by a private investment program beginning in 2015.

Question 22

Where does most of the money come from to pay the Social Security benefits of current retirees?

A) current workers
B) savings accounts established for each citizen
C) the Social Security Trust Fund
D) the states
E) federal income taxes

Question 23

The main goal of fiscal policy is __________.

A) to affect how much money is available to foreign governments for investment and its cost
B) to affect how much money is available to state governments for capital projects
C) to determine how much interest the government will pay on the federal debt
D) to stimulate the economy by increasing the number of exports into the United States
E) to use taxes and government spending to help stimulate or slow down economic growth

Question 24

Regulatory legislation at the start of the twentieth century primarily dealt with __________.

A) business monopolies
B) education
C) labor unions
D) technology
E) the environment

Question 25

Which of the following helps explain the difficulty in solving the long-term debt problem in the United States?

A) The decline in the strength of American political parties in recent years has made compromise in this area highly unlikely.
B) The decline in social spending has reduced the level of economic growth in the United States.
C) The Democratic Party has been captured by special interest groups that benefit from high levels of debt.
D) The Republican Party refuses to reduce the level of taxes that restrict economic growth in society.
E) The rise of extreme partisanship in recent years has made compromise in this area highly unlikely.

Question 26

Which of the following is true of Social Security benefits and tax receipts over time?

A) Benefits and tax receipts have increased.
B) Benefits have increased, but tax receipts have declined.
C) Benefits have decreased, but tax receipts have increased.
D) Benefits and tax receipts have decreased.
E) Benefits and tax receipts have been stable.

Question 27

Which of the following is true in the United States of how government handles ensuring health care to the poor and the elderly?

A) Medicare provides health care to the poor, and Medicaid provides health care to the elderly.
B) Medicare provides health care to the elderly, and Medicaid provides health care to the poor.
C) Medicare and Medicaid provide health care to all Americans regardless of wealth or age.
D) Medicare replaced Medicaid in order to provide health care to poor people as well as the elderly.
E) Medicaid replaced Medicare in order to provide health care to poor people as well as the elderly.

Question 28

What is the purpose of deregulation in the American political economy?

A) Deregulation seeks to increase the barriers to economic productivity.
B) Deregulation seeks to increase the political power of labor unions.
C) Deregulation seeks to increase the power of large economic monopolies.
D) Deregulation seeks to remove inefficient barriers in the collection of taxes.
E) Deregulation seeks to remove inefficient barriers to productivity and growth.

Question 29

Why are some safety net programs referred to as entitlements?

A) because benefits are distributed automatically to citizens who qualify, based on a set of guidelines
B) because they are benefits available only to the working poor in the United States
C) because they are benefits funded through the Title 9 section of the 1965 Civil Rights Act
D) because they are benefits that are distributed on a case-by-case basis to select citizens in extreme need
E) because they are benefits that one earns by working, and thus the person is entitled to them

Question 30

How does the Affordable Care Act change health care in the United States?

A) It establishes a "single-payer" system in which the government contracts with private firms to provide medical services, equipment, and drugs on behalf of the general public.
B) It fills in the Medicare prescription drug "donut hole" so that many of the elderly need no longer be faced with a choice of buying needed drugs or paying other expenses.
C) It forces states to expand the number of people who are covered by Medicaid, including poor adults without children.
D) It includes a "public option"-government insurance plans-to compete with private insurance companies within the state insurance pools.
E) It requires small businesses to offer health insurance coverage to their employees.

Question 31

Which of the following is a factor that influences the special character of the American safety net system?

A) the federal deficit
B) Federalism and the U.S. Constitution
C) popular culture
D) strong labor unions
E) the system of checks and balances

Question 32

Which of the following provides the greatest source of revenue for the federal government?

A) income taxes
B) Medicaid taxes
C) regressive taxes
D) Social Security taxes
E) taxes on cigarettes

Question 33

Which of the following provides one explanation for why Medicare costs have risen in recent years?

A) People now are in better health than were people in the past.
B) People rely on their own private insurance to supplement Medicare.
C) Most people on Medicare also receive Medicaid benefits.
D) Doctors charge less for many services than they did in the past.
E) People live longer today than they did in the past.

Question 34

What distinguishes a means-tested program from a social insurance program?

A) A means-tested program extends benefits based upon age categories, while a social insurance program provides benefits based upon immediate need.
B) A means-tested program only extends to benefits for the elderly, while a social insurance program extends benefits to everybody.
C) A social insurance program extends benefits only to the working poor, while a means-tested program extends benefits to everyone, regardless of social class.
D) A social insurance program provides benefits based upon demonstrated need, while a means-tested program provides benefits based upon lifetime contributions.
E) A social insurance program provides benefits based upon lifetime contributions, while a means tested program provides benefits based upon demonstrated need.

Question 35

In general, a recession does which of these?

A) generates a response by state governments
B) generates a response by the federal government
C) lasts at least a year
D) leads to higher inflation
E) reduces the unemployment level

Question 36

If Congress adopts a policy to make cars more fuel efficient, they have adopted a __________.

A) fiscal stimulus policy
B) microeconomic policy
C) monetary policy
D) regulatory policy
E) supply-side economic policy

Question 37

In an economic slowdown, Keynesian economic policy would advocate __________.

A) decreasing inflation
B) increasing government spending
C) increasing the money supply
D) increasing the unemployment rate
E) raising interest rates

Question 38

Which of the following would be considered a regulatory policy?

A) a social insurance policy
B) a food safety policy
C) a monetary policy
D) a redistributive policy
E) a federal stimulus policy

Question 39

How does the welfare system in the United States compare to other democracies?

A) The United States has a less developed welfare system than other democracies.
B) The United States has a more developed welfare system than other democracies.
C) The United States has a very similar welfare system to many other democracies.
D) The United States has no welfare system, while other democracies have developed welfare systems.
E) The United States has a limited welfare system that is still more developed than other democracies.

Question 40

Entitlement programs are designed to do which of the following?

A) get the poor out of poverty
B) help ensure equality in public school funding
C) help provide income to low-earning households
D) provide financial aid to poor college students
E) provide benefits to all qualifying individuals

Question 41

Under which of the following conditions would increasing the age at which people become eligible for Medicare make sense?

A) if life expectancy decreases
B) if life expectancy increases
C) if Medicaid expands to include a greater number of people
D) if the Affordable Care Act, colloquially known as Obamacare, is repealed
E) if the Affordable Care Act, colloquially known as Obamacare, is strengthened

Question 42

Which of the following could be seen as evidence in support of the passage of the Affordable Care Act, colloquially known as Obamacare?

A) Private insurance companies are adequate to provide health care coverage to nearly all Americans.
B) Uninsured Americans have access to health care because hospitals are required to treat patients with life-threatening conditions.
C) Health care costs have risen substantially over the past few decades.
D) Health care costs have remained stable over the past few decades.
E) Health care costs have declined over the past few decades.

Question 43

Which of the following explains why some people have suggested raising the eligibility age for Social Security?

A) Social Security has had a surplus for the past decade.
B) Social Security benefits have been cut in recent years.
C) Social Security may not be sustainable without cutting benefits.
D) Social Security may not be sustainable given the current number of children in the program.
E) Social Security may not be sustainable given the number of poor people in the program.

Question 44

Which of the following statements plausibly explains why Social Security is a prominent issue in many elections?

A) Young people are likely to follow politics and are likely to vote.
B) Young people are likely to follow politics, but they are unlikely to vote.
C) Seniors are likely to follow politics and are likely to vote.
D) Seniors are likely to follow politics, but they are unlikely to vote.
E) Seniors are unlikely to follow politics, but they do vote.

Question 45

Why might some businesses lobby for increased regulation by the federal government?

A) because they do not know that regulations always hurt them
B) to gain access to federal bureaucrats who will act in their interests
B) to lower their overall tax rate
D) to increase their profit margins to better serve the public good
E) to protect themselves from domestic and foreign competitors

Question 46

Since the economic crisis that began in 2008, the national debt has declined.

Question 47

Why is Medicaid such a complicated program?

A) because it is a federal program, and all federal programs are complicated
B) because it is administered by cities, which have very large bureaucracies
C) because it relies on monies from the Social Security Trust Fund
D) because it varies a great deal by state
E) because it was designed by bureaucrats

Question 48

Which of the following best explains the reason for continued public support for Social Security?

A) Social Security provides funds to only those people whose income falls below a certain level when they retire.
B) Social Security provides funds to retirees who paid in to the system, and it serves as a safety net to reduce poverty among seniors.
C) Social Security provides options for seniors to invest in private markets to supplement retirement income.
D) Social Security provides health care coverage to all seniors when they retire.
E) Social Security provides health care coverage to low-income seniors when they retire.

Question 49

Congress has the primary responsibility for setting interest rates in the United States.

Question 50

Which of the following rewards poor parents for working?

A) Medicaid
B) Children's Health Insurance Program
C) food stamps
D) Aid to Families with Dependent Children
E) Earned Income Tax Credit

Question 51

If all citizens who are 65 years and older are eligible for Medicare, but only some citizens are eligible for Medicaid because they lack certain resources, which of the following is also true?

A) Both Medicare and Medicaid are principally retirement programs.
B) Both Medicare and Medicaid are means-tested programs.
C) Medicare is an entitlement program, but Medicaid is a means-tested program.
D) Medicare is a means-tested program, but Medicaid is an entitlement program.
E) Medicare and Medicaid have been replaced by Temporary Assistance for Needy Families.

Question 52

Which of the following is necessary information to determine eligibility for a means-tested program?

A) the number of years a person has worked before retirement
B) the number of years a person has been on Social Security
C) the number of years a person has been in the military
D) the income level of the person in question
E) the retirement age of the person in question

Question 53

Which of the following changes would be the most likely to result in a stronger social safety net in the United States?

A) increased antigovernment sentiments
B) increased individualism
C) allowing businesses to have more political influence
D) stronger labor unions
E) increased ethnic diversity

Question 54

If a government wanted to use monetary policy to increase economic growth, which of the following steps should be taken?

A) Decrease interest rates to increase the amount of money in supply.
B) Increase the amount of foreign currency kept on reserve in U.S. banks.
C) Increase the amount of public revenue for investment by raising taxes.
D) Increase the government spending on public works projects.
E) Print a larger amount of money to increase the money supply.

Question 55

An advocate of a minimal government role in the economy could be described as a(n) __________.

A) externalist
B) fiscalist
C) Keynesian
D) macroeconomist
E) monetarist

Question 56

Which of the following is true of the safety net system in the United States compared with other rich democracies?

A) Americans are more likely to collect benefits.
B) U.S. safety net expenditures exceed those of European democracies.
C) The U.S. safety net system covers fewer people.
D) U.S. companies contribute more to the safety net system.
E) The U.S. safety net system tends to concentrate more on covering children.

Question 57

Which of these statements best describes the influence of interest rate adjustments by the Federal Reserve?

A) They always lead to lower rates of marginal taxes.
B) They can lead to higher unemployment in years of budget deficits.
C) They can spur economic growth by increasing the cost of money for business.
D) They can spur economic growth by increasing the available money supply.
E) They increase corporate profits by making money more available.

Question 58

Eliminating which of the following would save the U.S. government the most money?

A) social insurance benefits for those who are poor
B) social insurance benefits for those who are not poor
C) Medicaid benefits
D) TANF benefits
E) food stamps

Question 59

Which of the following explains the welfare state in America?

A) The American political culture favors an extensive welfare state.
B) The American political culture opposes an extensive welfare state.
C) Few Americans are in poverty, so welfare would not benefit many people.
D) Most politicians favor welfare expansion, but their constituents do not.
E) Most constituents and politicians favor welfare expansion.

Question 60

Which of the following is a point in favor of federal involvement in social policy?

A) The states have a long-standing tradition of extending rights to citizens.
B) The states are often viewed as laboratories of democracy.
C) The federal government can help to reduce inequality.
D) Federal legislation often increases inequality.
E) Federal power is usually transferred to the states.

Question 61

One reason for the increase in health care costs is the aging population in America.

Question 62

Medicare is designed to help the __________ population.

Question 63

The economic theory of regulation holds that most regulation results from pressure by public interest groups to protect citizens.

Question 64

Social Security is considered an entitlement program.

Question 65

___________ is a social welfare program for the elderly that all qualifying individuals receive at a certain age.

Question 66

Medicaid is the nation's largest public assistance program.

Question 67

Governments in all rich countries play a substantial role in managing economic affairs.

Question 68

A welfare program that contains an income eligibility threshold is likely a means-tested program.

Question 69

The annual difference between payments and receipts between a country and its trading partners is called the __________.

Question 70

Federal taxes, such as Social Security and Medicare payroll taxes, and excise taxes on alcohol and cigarettes, are __________.

Question 71

President Lyndon Johnson avoided addressing problems of poverty.

Question 72

Temporary Assistance to Needy Families replaced the federal program ___________.

Question 73

Because of the Great Recession, Congress is more likely to deregulate commercial and investment banks.

Question 74

Temporary Assistance for Needy Families provides funds for families in need of financial assistance. Therefore, it is considered a means-tested program.

Question 75

Keynesians would likely approve of the recent government stimulus package passed by Congress to deal with the economic crisis of the Great Recession.

Question 76

The welfare system in the United States is more developed compared to European nations because Europeans are more focused on individual responsibility than Americans.

Question 77

The Affordable Care Act sets up a government insurance plan that competes with plans offered by private insurance companies.

Question 78

A majority of nursing home residents receive assistance from the __________ program to help cover the cost of their care.

Question 79

Social Security is a means-tested program because it provides benefits to all qualifying individuals.

Question 80

A ___________ program distributes benefits on the basis of demonstrated need.