Question 1

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?

Accepted Answer

The state of antipoverty programs in the United States today is a complex and contentious issue. The history of these programs dates back to the New Deal era in the 1930s, when President Franklin D. Roosevelt implemented a series of social welfare programs to combat the effects of the Great Depression. These programs included Social Security, unemployment insurance, and public assistance for the poor.

In recent years, antipoverty programs have undergone significant changes, particularly with the implementation of welfare reform in the 1990s. This reform aimed to shift the focus from providing cash assistance to promoting self-sufficiency through work requirements and time limits on benefits. Additionally, there has been an expansion of tax credits for low-income individuals and families, such as the Earned Income Tax Credit and the Child Tax Credit.

The effectiveness of these changes is a topic of debate. While some argue that welfare reform has led to a reduction in poverty and increased workforce participation, others point to the persistence of deep poverty and the challenges faced by individuals with barriers to employment, such as disabilities or lack of access to affordable childcare.

Areas of social need that have not been adequately addressed include affordable housing, access to healthcare, and food insecurity. Many low-income individuals and families struggle to afford basic necessities, and the current social safety net does not fully address these needs.

The financial costs of maintaining the current social safety net are significant. According to the Center on Budget and Policy Priorities, federal and state spending on means-tested programs totaled $616 billion in 2019. This includes programs such as Medicaid, the Supplemental Nutrition Assistance Program (SNAP), and housing assistance.

The social cost of removing or reducing the social safety net would be substantial. Many individuals and families rely on these programs to meet their basic needs, and cutting or eliminating them could lead to increased poverty, homelessness, and food insecurity. Additionally, the long-term consequences of childhood poverty, such as lower educational attainment and poorer health outcomes, would have far-reaching effects on society as a whole.

In conclusion, the state of antipoverty programs in the United States is a complex issue with both successes and challenges. While there have been changes aimed at promoting self-sufficiency, there are still significant gaps in addressing the social needs of low-income individuals and families. The financial costs of maintaining the current social safety net are substantial, but the social costs of reducing it would be even greater. It is clear that there is a need for continued efforts to address poverty and inequality in the United States.

Question 2

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

Accepted Answer

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 E

Question 3

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

Accepted Answer

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

Question 4

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

Accepted Answer

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 5

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

Accepted Answer

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 6

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?

Accepted Answer

The answer of What caused the recession that began in...

Question 7

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

Accepted Answer

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

Question 8

How has the Trump administration responded to the ACA?

Accepted Answer

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 9

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

Accepted Answer

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 10

The 2013 passage of the Affordable Care Act

Accepted Answer

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 11

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

Accepted Answer

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 12

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

Accepted Answer

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 13

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

Accepted Answer

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 14

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

Accepted Answer

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 15

The largest source of federal revenue is

Accepted Answer

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

Question 16

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

Accepted Answer

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 17

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.

Accepted Answer

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 18

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

Accepted Answer

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 19

The second-largest source of federal revenue is

Accepted Answer