Question 1

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) B) and E)

Question 2

Which president's use of government policy as economic stimulus 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) None of the above
G) A) and E)

Question 3

Regarding the Kyoto agreement and greenhouse gas emissions, which of the following is true?

Accepted Answer

A)   The United States is the largest single producer of greenhouse emissions in the world, on a per-capita basis.
B)   President George W. Bush rejected the agreement.
C)   It was a multinational effort to reduce carbon emissions.
D)   The burden of addressing the global warming problem will fall unevenly on nations.
E)   All of these answers are correct.F) B) and D)
G) A) and D)

Question 4

Which of the following is correct about environmental policy?

Accepted Answer

A)   The national forests are subject to a dual use policy of preservation, recreation, and exploitation of the rich natural resources.
B)   The Environmental Protection Agency was elevated to cabinet status in 1998 by President Clinton and the Republican Congress.
C)   Environmental regulation has done little to improve air and water quality.
D)   Policymakers always give more consideration to environmental protection than to economic development when the two conflict.
E)   None of these answers is correct.F) A) and B)
G) C) and E)

Question 5

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

Accepted Answer

A)   the 1930s.
B)   the 1860s.
C)   the 1960s.
D)   the 1980s.
E)   the 2000s.Essay QuestionsF) C) and D)
G) A) and E)

Question 6

If the Fed wanted to act to 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)   discourage businesses from expanding.
E)   encourage people to save more and spend less.F) None of the above
G) B) and E)

Question 7

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 8

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) A) and E)
G) B) and D)

Question 9

The Federal Reserve System

Accepted Answer

A)   was created in 1933.
B)   is run by a congressional committee.
C)   regulates only national banks.
D)   was created specifically to conduct fiscal policy.
E)   None of these answers is correct.F) A) and B)
G) A) and E)

Question 10

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 11

Which is true regarding the nation's environmental policy?

Accepted Answer

A)   The first major steps by the national government to clean up the environment began in the early 1900s.
B)   A majority of the public is sympathetic to environmentalism.
C)   The modern environmental movement gained impetus with the publication of Armageddon in 1949.
D)   In the 1960s, the government began a policy of land conservation through the creation of national parks.
E)   All of these answers are correct.F) All of the above
G) A) and D)

Question 12

Fiscal policy is a mechanism the government employs to influence the economy. Fiscal policy is based on

Accepted Answer

A)   the idea that a balanced budget is the key to a healthy economy.
B)   the money supply.
C)   the government's taxing and spending decisions.
D)   the importance of maintaining a 12-month (fiscal year)  economic cycle.
E)   the projections of the Federal Reserve Board.F) A) and E)
G) A) and D)

Question 13

The total amount of money the federal government owes to its creditors is the

Accepted Answer

A)   trade deficit.
B)   budget deficit.
C)   national debt.
D)   credit imbalance.
E)   income disparity.F) All of the above
G) C) and D)

Question 14

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) All of the above
G) A) and D)

Question 15

Describe Adam Smith's laissez-faire model of economics.

Accepted Answer

Laissez-faire capitalism holds that priv...

Question 16

The Federal Reserve controls the money supply through all of the following actions EXCEPT

Accepted Answer

A)   raising the cash reserve that member banks are required to deposit with the Federal Reserve.
B)   raising the interest rate that member banks are charged when they borrow from the Federal Reserve.
C)   lowering the cash reserve that member banks are required to deposit with the Federal Reserve.
D)   lowering the interest rate that member banks are charged when they borrow from the Federal Reserve.
E)   lowering the tax rate on individuals.F) A) and B)
G) C) and E)

Question 17

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) All of the above
G) C) and E)

Question 18

The creation of the Food and Drug Administration and the passage of the Securities and Exchange Act were intended to

Accepted Answer

A)   promote equity in the economy.
B)   eliminate the problem of externalities in the economy.
C)   destroy the legal foundation of the business trust.
D)   promote efficiency in the economy.
E)   None of these answers is correct.F) A) and B)
G) C) and E)

Question 19

In which year was the federal budget deficit the LARGEST?

Accepted Answer

A)   2000
B)   2004
C)   2007
D)   2010
E)   2013F) All of the above
G) B) and E)

Question 20

The tax cuts pushed by President George W. Bush while in office were premised largely on

Accepted Answer

A)   demand-side economics.
B)   supply-side economics.
C)   fiscal policy.
D)   monetary policy.
E)   Keynesian economics.F) B) and D)
G) C) and E)

Exam 15: Economic and Environmental Policy: Contributing to Prosperity

The Federal Reserve System

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

The Federal Reserve controls the money supply through all of the following actions EXCEPT

Correct Answer
verified

The creation of the Food and Drug Administration and the passage of the Securities and Exchange Act were intended to

Correct Answer
verified

Fiscal policy is a mechanism the government employs to influence the economy. Fiscal policy is based on

Correct Answer
verified

The total amount of money the federal government owes to its creditors is the

Correct Answer
verified

If the Fed wanted to act to reduce unemployment, it would

Correct Answer
verified

The tax cuts pushed by President George W. Bush while in office were premised largely on

Correct Answer
verified

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

Correct Answer
verified

Which president's use of government policy as economic stimulus ushered in the modern era of U.S. government fiscal policy?

Correct Answer
verified

Describe Adam Smith's laissez-faire model of economics.

Correct Answer
verified
Laissez-faire capitalism holds that priv...
View Answer

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

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

Which is true regarding the nation's environmental policy?

Correct Answer
verified

Which of the following is correct about environmental policy?

Correct Answer
verified

In which year was the federal budget deficit the LARGEST?

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

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

Regarding the Kyoto agreement and greenhouse gas emissions, which of the following is true?

Correct Answer
verified

Exam 15: Economic and Environmental Policy: Contributing to Prosperity

The Federal Reserve System

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

The Federal Reserve controls the money supply through all of the following actions EXCEPT

Correct AnswerverifiedShow Answer

The creation of the Food and Drug Administration and the passage of the Securities and Exchange Act were intended to

Correct AnswerverifiedShow Answer

Fiscal policy is a mechanism the government employs to influence the economy. Fiscal policy is based on

Correct AnswerverifiedShow Answer

The total amount of money the federal government owes to its creditors is the

Correct AnswerverifiedShow Answer

If the Fed wanted to act to reduce unemployment, it would

Correct AnswerverifiedShow Answer

The tax cuts pushed by President George W. Bush while in office were premised largely on

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which president's use of government policy as economic stimulus ushered in the modern era of U.S. government fiscal policy?

Correct AnswerverifiedShow Answer

Describe Adam Smith's laissez-faire model of economics.

Correct AnswerverifiedLaissez-faire capitalism holds that priv...View AnswerShow Answer

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

Which is true regarding the nation's environmental policy?

Correct AnswerverifiedShow Answer

Which of the following is correct about environmental policy?

Correct AnswerverifiedShow Answer

In which year was the federal budget deficit the LARGEST?

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

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

Regarding the Kyoto agreement and greenhouse gas emissions, which of the following is true?

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified

Correct Answer
verified
Laissez-faire capitalism holds that priv...
View Answer

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

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

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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