Question 1

_____ is usually defined as two or more quarters of economic decline.

Accepted Answer

A recession is defined as two or more quarters of economic decline, which means a decrease in GDP and a slowdown in economic activity. Inflation refers to a sustained increase in the general price level of goods and services over time. Expansion is a period of economic growth, typically marked by an increase in GDP, employment, and consumer spending. An appreciation period refers to an increase in the value of a currency relative to other currencies, while a boom period is a time of rapid economic growth and prosperity.

Question 2

__________involves changing the amount of money in circulation to affect interest rates, credit markets, the rate of inflation, the rate of economic growth, and the rate of unemployment.

Accepted Answer

Monetary policy involves managing the money supply and interest rates to influence economic conditions, including inflation, growth, and unemployment.

Question 3

Gerald is a retired businessman. At the age of seventy-two years, he is diagnosed with throat cancer. His medical expenses are most likely to be covered by _____.

Accepted Answer

As Gerald is a retired businessman, he may qualify for Medicare, which is a federal health insurance program for people over 65 or with certain disabilities. While Medicaid is a joint federal and state program for low-income individuals and families, TRICARE is a health insurance program for active-duty and retired military personnel and their families. PeachCare and CHIP are state-specific programs for children from low-income families. Therefore, the most likely program to cover Gerald's medical expenses is Medicare.

Question 4

Advocates of the__________believe that the government should tie the value of the dollar to commodities such as gold.

Accepted Answer

Advocates of the hard-money policy believe in tying the value of currency to a tangible commodity like gold, ensuring its value is stable and not subject to inflation.

Question 5

The _____ is an independent regulatory agency that was established by Congress as the nation's central banking system in 1913.

Accepted Answer

The establishment of the Federal Reserve System by Congress in 1913 was in response to financial panics that occurred frequently during the nineteenth and early twentieth centuries. The Federal Reserve System was created to provide the nation with a stable and flexible monetary and financial system. The other options listed are government agencies, but they are not responsible for regulating the nation's central banking system like the Federal Reserve System.

Question 6

Which of the following statements is true of offshore drilling?

Accepted Answer

Offshore drilling is a method used by the United States to reduce its reliance on foreign oil by tapping into domestic oil reserves located beneath the ocean floor.

Question 7

Which of the following best describes the second part of the first stage of the policymaking process?

Accepted Answer

The second part of the first stage of the policymaking process involves getting an issue on the political agenda to be addressed by Congress. This is crucial for any policy issue to be considered and potentially developed into legislation.

Question 8

Steven is a cashier at a local retail store. He was recently diagnosed with diabetes and has begun treatment. His monthly income is low and is not enough to pay his medical bills. Steven's medical expenses are most likely to be covered by _____.

Accepted Answer

Medicaid is a government-funded program that provides health coverage for low-income individuals and families, including those with disabilities like Steven. CHIP and PeachCare are also government-funded programs, but they primarily provide health coverage for children. TRICARE is a health insurance program for military personnel and their families. Medicare is a federal health insurance program for those 65 and older or those with certain disabilities, but it is not typically available to those with low incomes like Steven. Therefore, Medicaid is the most likely program to help Steven pay for his medical bills.

Question 9

The costs of Medicare are expected to rise over the next two decades as:

Accepted Answer

The retirement of millions of baby boomers will increase the number of Medicare beneficiaries, leading to higher costs.

Question 10

Which of the following statements is true of nuclear energy?

Accepted Answer

Nuclear energy does not release greenhouse gases and therefore does not contribute to global warming. However, it is not a renewable source of energy and does pose potential threats, such as accidents and disposal of nuclear waste.

Question 11

Which of the following terms refers to a plan or course of action taken by the government to respond to a political issue or to enhance the social or political well-being of society?

Accepted Answer

A policy refers to a plan or course of action taken by the government to respond to a political issue or to enhance the social or political well-being of society. A writ is a legal document issued by a court, a caucus is a meeting of political party members to select candidates or determine policy positions, a subpoena is a legal order to appear in court or produce evidence, and arbitration is a method of resolving disputes outside of the court system.

Question 12

Bradley is a seventy-year-old war veteran. He receives a hefty sum as pension from the government. Which of the following health-care insurance policies is he most likely to have?

Accepted Answer

The answer of Bradley is a seventy-year-old war veteran. He...

Question 13

__________saw the Affordable Care Act as a "big government takeover" of health care and a threat to popular freedoms.

Accepted Answer

Conservatives often viewed the Affordable Care Act as a "big government takeover" of health care, believing it imposed too many regulations and infringed on individual freedoms.

Question 14

A gas that, when released into the atmosphere, traps the sun's heat and slows its release into outer space is known as a(n)_____.

Accepted Answer

The description in the question matches the definition of a greenhouse gas. Such gases include carbon dioxide, methane, and water vapor. They are responsible for the greenhouse effect which helps to regulate the Earth's temperature, but human activities have caused an overabundance of these gases leading to global warming. Noble gases, inert gases, dielectric gases, and insulating gases do not have the same effect on the atmosphere.

Question 15

Which of the following processes comprises the processes of getting an issue on the political agenda; formulating, adopting, and implementing a policy with regard to the issue; and then evaluating the results of the policy?

Accepted Answer

The policymaking process includes all the steps involved in getting an issue on the political agenda, formulating, adopting, and implementing a policy with regard to the issue, and then evaluating the results of the policy. The other processes (agenda setting process, policy formulation process, politicization process, and issue identification process) are all part of the larger policymaking process.

Question 16

Which of the following is a renewable source of energy?

Accepted Answer

Solar power is a renewable source of energy as it is sourced directly from the sun and can be continuously replenished. Nuclear fuel, natural gas, coal, and petroleum are all non-renewable sources of energy as they are finite resources that are depleted over time.

Question 17

The government is most likely to raise money to pay its expenses:

Accepted Answer

The most common and reliable way for the government to raise money to pay its expenses is through taxes levied on personal income. This allows the government to collect revenue from its citizens, who benefit from public services and infrastructure. Other methods such as borrowing money or lowering interest rates could have negative economic consequences, whereas taxes are a consistent and predictable source of income for the government.

Question 18

Years ago, when Congress imposed very high tax rates on high incomes, it provided for more loopholes in the federal tax system. These loopholes:

Accepted Answer

Loopholes in the tax system allowed many wealthy individuals to decrease their tax bills significantly by taking advantage of deductions, credits, and other loopholes. These loopholes provided ways for high-income individuals to reduce their taxable income and pay lower tax rates, effectively undermining the high tax rates imposed by Congress.

Question 19

Identify a newly insured product under the 2014 farm bill.

Accepted Answer

Sushi rice was among the newly insured products under the 2014 Farm Bill, reflecting the evolving agricultural insurance landscape to include more diverse crops.

Question 20

Identify a technique adopted by Congress to fund the universal health-insurance coverage program it had developed in 2009.

Accepted Answer

Congress adopted an increased Medicare tax rate as one of the techniques to fund the universal health-insurance coverage program developed in 2009.

Quiz 15: Domestic Policy