Question 1

When was the last time the U.S.government had a balanced budget?

Accepted Answer

A)  1970s
B)  1980s
C)  1990s
D)  2000s
E)  None of these answers is correct.F) All of the above
G) B) and E)

Question 2

If the Fed wanted to act to increase borrowing by firms and consumers and thus hopefully reduce unemployment,it would

Accepted Answer

A)  sell securities.
B)  raise the reserve rate.
C)  decrease the interest rate on loans to member banks.
D)  increase the interest rate on loans to member banks.
E)  encourage people to save more and spend less.F) D) and E)
G) All of the above

Question 3

Which president's use of government policy to stimulated the economy ushered in the modern era of U.S.government fiscal policy?

Accepted Answer

A)  Thomas Jefferson
B)  Franklin Roosevelt
C)  Lyndon Johnson
D)  Woodrow Wilson
E)  William ClintonF) C) and E)
G) B) and D)

Question 4

Which of the following government agencies regulates business competition?

Accepted Answer

A)  Federal Trade Commission
B)  Interstate Commerce Commission
C)  Securities and Exchange Commission
D)  all of these: the Federal Trade Commission; the Interstate Commerce Commission; and the Securities and Exchange Commission
E)  None of these answers is correct.F) A) and E)
G) A) and D)

Question 5

A ruling by the Food and Drug Administration that a drug is dangerous to use and therefore cannot be marketed is an example of regulation for the purpose of

Accepted Answer

A)  supply-side safety.
B)  demand-side safety.
C)  equity.
D)  efficiency.
E)  profit.F) B) and D)
G) A) and E)

Question 6

The primary purpose of the Troubled Asset Relief Program was to

Accepted Answer

A)  quickly provide jobs to the unemployed.
B)  shore up shaky financial institutions.
C)  lower the rate of inflation.
D)  demonstrate that only the Fed controlled economic policy.
E)  help out the European economy and boost demand for American exports.F) D) and E)
G) A) and D)

Question 7

The federal government has assumed a permanent,strong role in the economy,contributing to its stability and efficiency,since the

Accepted Answer

A)  1930s.
B)  1860s.
C)  1960s.
D)  1980s.
E)  2000s.F) B) and C)
G) All of the above

Question 8

Define the term fiscal policy and explain how fiscal policy can be used in response to economic conditions.
D.Roosevelt in the 1930s.When there is an economic downturn,government can increase its spending or cut individual taxes as a means of stimulating consumer (demand-side)spending.When the economy is inflationary,the opposite actions can be taken as a way of dampening consumer demand.Fiscal policy can also take a supply-side form,as it did in part during the Reagan and George W.Bush years.Supply-side emphasizes business production and investment.The economy can be stimulated through a reduction in taxes on firms and high-income individuals.

Accepted Answer

The government's efforts to maintain a s...

Question 9

Supply-side economics is based primarily on

Accepted Answer

A)  stimulation of the business (supply) component.
B)  government stimulation of consumer demands.
C)  a repudiation of trickle-down theory.
D)  increases in taxation.
E)  increases in government regulation.F) B) and C)
G) None of the above

Question 10

A fiscal policy solution to inflation would be to

Accepted Answer

A)  decrease government spending.
B)  lower tariffs and other barriers to trade.
C)  increase the prime interest rate.
D)  raise the discount rate.
E)  decrease the tax rate.F) A) and B)
G) B) and E)

Question 11

What happened after Lehman Brothers went out of business in September of 2008?

Accepted Answer

A)  The stock market rose dramatically.
B)  The stock market rose slightly.
C)  The stock market was essentially unchanged.
D)  The stock market dropped slightly.
E)  The stock market dropped dramatically.F) All of the above
G) C) and E)

Question 12

Explain the difference between economic efficiency and economic equity as principles that justify government regulation of the economy.

Accepted Answer

An economy is a system of production and...

Question 13

Which of the following statements BEST describes the relationship today between government and the economy in the United States?

Accepted Answer

A)  The economy is largely self-regulating.
B)  The government subsidizes economic interests but otherwise leaves them to operate as they please.
C)  The government is the driving force in the U.S.economy; business has a secondary role.
D)  The government participates in the economy though the regulation of privately owned businesses.
E)  The government owns most of the means of production in the United States.F) B) and D)
G) A) and C)

Question 14

Democrats in Washington have usually responded to high levels of unemployment with

Accepted Answer

A)  reduced government spending.
B)  increased government spending.
C)  increased government taxes.
D)  decreased government taxes.
E)  decreased government regulation.F) C) and E)
G) C) and D)

Question 15

Supply-side economics,as implemented by the Reagan and Bush administrations,involved

Accepted Answer

A)  the supply component of the supply-demand equation.
B)  stressing the importance of tax cuts for businesses.
C)  stressing the importance of tax cuts for the wealthy.
D)  an increase in the size of the national debt.
E)  All of these answers are correct.F) D) and E)
G) C) and D)

Question 16

The highest rate of inflation (13 percent) since World War II occurred in ________.

Accepted Answer

A)  1955
B)  1963
C)  1979
D)  1991
E)  2002F) B) and E)
G) A) and D)

Question 17

Judged in the context of the full range of public policies,the government in the United States has been

Accepted Answer

A)  equally hostile to the interests of business and labor.
B)  equally supportive of the interests of business and labor.
C)  substantially more supportive of business than labor.
D)  substantially more supportive of labor than business.
E)  substantially more supportive of left-wing radicals than conservatives.F) A) and B)
G) A) and E)

Question 18

On the whole,American politicians have been LEAST willing to ________ in order to combat global warming.

Accepted Answer

A)  reduce carbon emissions
B)  encourage clean energy
C)  encourage energy conservation
D)  consider alternative energy sources
E)  raise fuel standards for vehiclesF) None of the above
G) A) and D)

Question 19

The Great Recession,which began in 2008,was precipitated primarily because the federal government was too lax in regulating

Accepted Answer

A)  computer technology.
B)  the buying and selling of stocks.
C)  interest rates charged to banks.
D)  subprime mortgages.
E)  the buying and selling of junk bonds.F) None of the above
G) B) and E)

Question 20

Farm subsidies account for approximately ________ of net agricultural income,making America's farmers among the most heavily subsidized in the world.

Accepted Answer

A)  ten percent
B)  one-fifth
C)  a third
D)  one-seventh
E)  two-thirdsF) B) and E)
G) A) and B)

Exam 15: Economic and Environmental Policy: Contributing to Prosperity

The primary purpose of the Troubled Asset Relief Program was to

Correct Answer
verified

When was the last time the U.S.government had a balanced budget?

Correct Answer
verified

On the whole,American politicians have been LEAST willing to ________ in order to combat global warming.

Correct Answer
verified

The federal government has assumed a permanent,strong role in the economy,contributing to its stability and efficiency,since the

Correct Answer
verified

A ruling by the Food and Drug Administration that a drug is dangerous to use and therefore cannot be marketed is an example of regulation for the purpose of

Correct Answer
verified

Supply-side economics is based primarily on

Correct Answer
verified

What happened after Lehman Brothers went out of business in September of 2008?

Correct Answer
verified

Which of the following statements BEST describes the relationship today between government and the economy in the United States?

Correct Answer
verified

If the Fed wanted to act to increase borrowing by firms and consumers and thus hopefully reduce unemployment,it would

Correct Answer
verified

Explain the difference between economic efficiency and economic equity as principles that justify government regulation of the economy.

Correct Answer
verified
An economy is a system of production and...
View Answer

Farm subsidies account for approximately ________ of net agricultural income,making America's farmers among the most heavily subsidized in the world.

Correct Answer
verified

Correct Answer
verified
The government's efforts to maintain a s...
View Answer

Which of the following government agencies regulates business competition?

Correct Answer
verified

The highest rate of inflation (13 percent) since World War II occurred in ________.

Correct Answer
verified

Supply-side economics,as implemented by the Reagan and Bush administrations,involved

Correct Answer
verified

Judged in the context of the full range of public policies,the government in the United States has been

Correct Answer
verified

Which president's use of government policy to stimulated the economy ushered in the modern era of U.S.government fiscal policy?

Correct Answer
verified

A fiscal policy solution to inflation would be to

Correct Answer
verified

Democrats in Washington have usually responded to high levels of unemployment with

Correct Answer
verified

The Great Recession,which began in 2008,was precipitated primarily because the federal government was too lax in regulating

Correct Answer
verified

Exam 15: Economic and Environmental Policy: Contributing to Prosperity

The primary purpose of the Troubled Asset Relief Program was to

Correct AnswerverifiedShow Answer

When was the last time the U.S.government had a balanced budget?

Correct AnswerverifiedShow Answer

On the whole,American politicians have been LEAST willing to ________ in order to combat global warming.

Correct AnswerverifiedShow Answer

The federal government has assumed a permanent,strong role in the economy,contributing to its stability and efficiency,since the

Correct AnswerverifiedShow Answer

A ruling by the Food and Drug Administration that a drug is dangerous to use and therefore cannot be marketed is an example of regulation for the purpose of

Correct AnswerverifiedShow Answer

Supply-side economics is based primarily on

Correct AnswerverifiedShow Answer

What happened after Lehman Brothers went out of business in September of 2008?

Correct AnswerverifiedShow Answer

Which of the following statements BEST describes the relationship today between government and the economy in the United States?

Correct AnswerverifiedShow Answer

If the Fed wanted to act to increase borrowing by firms and consumers and thus hopefully reduce unemployment,it would

Correct AnswerverifiedShow Answer

Explain the difference between economic efficiency and economic equity as principles that justify government regulation of the economy.

Correct AnswerverifiedAn economy is a system of production and...View AnswerShow Answer

Farm subsidies account for approximately ________ of net agricultural income,making America's farmers among the most heavily subsidized in the world.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedThe government's efforts to maintain a s...View AnswerShow Answer

Which of the following government agencies regulates business competition?

Correct AnswerverifiedShow Answer

The highest rate of inflation (13 percent) since World War II occurred in ________.

Correct AnswerverifiedShow Answer

Supply-side economics,as implemented by the Reagan and Bush administrations,involved

Correct AnswerverifiedShow Answer

Judged in the context of the full range of public policies,the government in the United States has been

Correct AnswerverifiedShow Answer

Which president's use of government policy to stimulated the economy ushered in the modern era of U.S.government fiscal policy?

Correct AnswerverifiedShow Answer

A fiscal policy solution to inflation would be to

Correct AnswerverifiedShow Answer

Democrats in Washington have usually responded to high levels of unemployment with

Correct AnswerverifiedShow Answer

The Great Recession,which began in 2008,was precipitated primarily because the federal government was too lax in regulating

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
An economy is a system of production and...
View Answer

Correct Answer
verified

Correct Answer
verified
The government's efforts to maintain a s...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified