Deck 15: Domestic Policy

Question 1

According to the principle underlying fiscal policy, during inflation, fiscal policy should:

A)stimulate economic activity by decreasing taxes.
B)curb economic activity by reducing government spending.
C)let the forces of supply and demand operate on their own.
D)expand the rate of growth of the money supply.
E)use the easy-money policy.

Answer 1

B

Question 2

Every time there is a federal government deficit, there is an increase in:

A)consumer spending.
B)business investments.
C)the value of the dollar.
D)the rate of growth of the money supply.
E)the total accumulated public debt.

Answer 2

E

Question 3

Discretionary spending are not required to be explicitly renewed.

Answer 3

False

Question 4

Identify a true statement about health-insurance coverage.

A)The national health-insurance plan that the United States has adopted excludes the private sector.
B)The United States is the only economically advanced nation that provides universal health-insurance coverage to its citizens.
C)The universal health-insurance plan proposed by President Bill Clinton during his first term did not become a law.
D)The national health-insurance plans are mainly concentrated in the world's economically backward nations.
E)The United States is the first nation that provided universal health-insurance coverage to its citizens.

Question 5

Silas is ten years old. His mother is a homemaker, while his father is a door-to-door salesman. Their family income is not much. Silas is most likely to be covered by _____.

A)the Children's Health Insurance Program
B)TRICARE
C)CHAMPUS
D)the Family Wellness Scheme
E)Medicare

Question 6

Which of the following actions is most likely to be taken by the Federal Reserve System in periods of recession and high unemployment?

A)Expanding the rate of growth of the money supply
B)Causing interest rates to rise
C)Inducing consumers to spend less and businesses to invest less
D)Pursuing a tight-money policy
E)Reducing the rate of growth in the amount of money in circulation

Question 7

The American income tax system is regressive.

Question 8

Chad, a sales executive at Ochre Inc., was laid off after Ochre faced severe financial losses in the second and third quarters of 2014. The country witnessed an economic decline in the same year. As a result, Chad is now struggling to make ends meet with his limited savings. His debt has considerably increased, and he is finding it difficult to pay his household bills. This situation is an example of _____.

A)inflation
B)an appreciation period
C)a recession
D)disintermediation
E)a boom period

Question 9

Which of the following statements is true of Medicaid?

A)Medicaid is restricted to covering the health-care insurance for Americans aged sixty-five years and over.
B)Medicaid does not pay for nursing home expenses.
C)Medicaid covers people with disabilities, irrespective of age or income.
D)Recent cost-containment measures have slowed the growth of Medicaid spending.
E)Medicaid is now the government's second-largest domestic spending program, after Social Security.

Question 10

Public debt refers to the total value of all outstanding:

A)corporate borrowing.
B)local government borrowing alone.
C)federal government borrowing.
D)borrowing by the public.
E)borrowing by interest groups.

Question 11

Which of the following statements is true of energy sources in the United States?

A)U.S. oil production, which rose sharply after 1985, began to decline again in 2009.
B)Low natural gas prices plus new air-pollution regulations have made coal uncompetitive as a source of electricity.
C)The United States is not in favor of using nuclear energy as it releases greenhouse gases.
D)The Obama administration approved the construction of the Keystone XL pipeline along the U.S. Gulf Coast.
E)Imports of natural gas are cost-effective as natural gas can be transported by ship efficiently.

Question 12

Attitudes toward climate change have become highly politicized.

Question 13

Jared works at a software firm. He is promoted to the post of senior engineer after three years of employment. Despite his promotion, he has to cut down on purchases as his cost of living has almost doubled within the same time period. This situation best represents _____.

A)inflation
B)a recession
C)deflation
D)disintermediation
E)deregulation

Question 14

Monetary policy is under the control of:

A)the Bureau of the Fiscal Services.
B)the Committee on Ways and Means.
C)the Federal Reserve System.
D)the Internal Revenue Service.
E)the Department of the Treasury.

Question 15

Nuclear power greatly contributes to global warming because nuclear reactors release greenhouse gases.

Question 16

The centerpiece of the 2014 farm bill was the abolition of direct payments for certain crops.

Question 17

Until recently, support for Keynesianism was relatively bipartisan.

Question 18

Which of the following statements is true of Medicare?

A)Medicare pays for health-care services for low-income persons, irrespective of age.
B)Medicare is now the government's second-largest domestic spending program, after Social Security.
C)The Medicare program pays for nursing home expenses.
D)The costs of Medicare are expected to decline over the next two decades with the retirement of baby boomers.
E)Medicare is an example of federal discretionary spending.

Question 19

When the U.S. government spends more than it receives, it typically finances the shortfall by selling IOUs, commonly called _____.

A)entitlements
B)long-term loans
C)credit vouchers
D)treasuries
E)interest investments

Question 20

Every bill that passes through Congress is an opportunity for individual members of Congress to:

A)veto the bill.
B)lobby the president.
C)help constituents.
D)set the national economic policy.
E)solicit money from interest groups.

Question 21

Which of the following best describes domestic policy?

A)Public policy concerning matters of foreign affairs
B)Public policy concerning issues within a national unit
C)Policy that primarily focuses on families and households
D)Policy that encompasses scientific inventions and innovations
E)Policy that primarily concerns domestic workers, such as maids and caregivers

Question 22

The principle underlying fiscal policy states that when unemployment is rising and the economy is going into a recession, fiscal policy should:

A)stimulate economic activity by decreasing taxes.
B)curb economic activity by reducing government spending.
C)let the forces of supply and demand operate on their own.
D)employ a tight-money policy.
E)reduce the rate of growth in the amount of money in circulation.

Question 23

The _____ sells IOUs on behalf of the U.S. government.

A)Department of Commerce
B)U.S. Treasury
C)Federal Reserve Board
D)U.S. Postal Service
E)U.S. Judiciary

Question 24

The final stage of policymaking involves:

A)evaluating the success of a policy.
B)implementing a policy.
C)getting an issue on the political agenda.
D)developing proposed legislation.
E)applying policy through local governments.

Question 25

Identify a true statement about an entitlement program.

A)An entitlement program needs to be renewed every year only if Congress passes an annual funding measure.
B)Congress has direct control over how much an entitlement program will cost in any particular year.
C)It is impossible to estimate the costs of an entitlement program.
D)An entitlement program is invariably the same as a discretionary spending.
E)An entitlement program pays out benefits to persons who meet specified requirements.

Question 26

Which of the following is a provision of the health-care bills passed by Congress and signed by President Obama?

A)Health-care policies could only be purchased through licensed insurance brokers.
B)Insurance could be purchased through online insurance exchanges solely run by the federal government.
C)Subsidies would be provided to citizens only if they are covered by an employer's plan.
D)Subsidies would be granted to small employers that obtain insurance plans for their employees.
E)Young people could remain covered by their parents' insurance until they turned eighteen.

Question 27

The second stage of the policymaking process involves the _____ of specific plans for achieving a particular goal.

A)formulation and adoption
B)identification and evaluation
C)evaluation and execution
D)identification and formulation
E)adoption and execution

Question 28

Once Congress establishes a policy by enacting legislation, the immediate next action is taken by the:

A)legislative branch that enforces the new policy through its agencies.
B)executive branch that enforces the new policy through its agencies.
C)legislative branch that ensures the legislation is constitutional.
D)judicial branch that ensures the legislation is constitutional.
E)executive branch that evaluates the validity of the policy.

Question 29

When scholars and scientists conduct studies to determine whether a law has achieved desired results, they are engaging in:

A)policy evaluation.
B)policy formulation.
C)policy adoption.
D)policy implementation.
E)policy identification.

Question 30

Identify a true statement about oil imports by the United States.

A)The United States is not excessively dependent on only one nation for oil imports.
B)The United States does not import oil from its neighbors.
C)The United States has very friendly ties with all the countries from which it imports oil.
D)The United States does not have diversified sources for its imported oil.
E)The United States is not dependent on foreign countries for oil.

Question 31

Most climatologists believe that the recent climate change is the result of human activities, especially the release of:

A)noble gases.
B)inert gases.
C)greenhouse gases.
D)dielectric gases.
E)insulating gases.

Question 32

Which of the following statements is true of fracking?

A)It has turned the United States into the number-one oil producer in the world as of 2014.
B)It greatly contributes to the release of greenhouse gases into the atmosphere.
C)It is a costly process owing to high prices of oil and gas.
D)It involves pumping a high-pressure mixture of iron and sulfur into oil-or gas-bearing underground rock.
E)It is commonly known as gas well dewatering.

Question 33

Sixty-two-year-old William is a retired employee. He stays in a nursing home facility with other retired persons. The nursing home mostly caters to low-income people. William's medical expenses are most likely to be covered by _____.

A)CHIP
B)PeachCare
C)Medicaid
D)TRICARE
E)Medicare

Question 34

Which of the following statements is true of public debt?

A)Public debt is also known as fiscal debt.
B)The net public debt includes sums that the government owes to itself.
C)The Department of Commerce sells IOUs on behalf of the U.S. government.
D)The interest on treasuries is paid by federal taxes.
E)The net public debt does not include funds held by the Federal Reserve System.

Question 35

__________is a renewable source of energy.

A)Nuclear fuel
B)Natural gas
C)Coal
D)Hydroelectric energy
E)Oil

Question 36

Which of the following actions is most likely to be taken by the Federal Reserve System in periods of rising inflation?

A)Pursuing an easy-money policy
B)Reducing interest rates
C)Signing trade embargos
D)Reducing the rate of growth in the amount of money in circulation
E)Expanding the rate of growth of the money supply

Question 37

Identify a true statement about the tax system in the United States.

A)The Tax Reform Act of 1986 was intended to lower taxes and simplify the tax code and it did just that for most taxpayers.
B)A few years after the Tax Reform Act of 1986 was passed, large federal deficits forced Congress to cut spending.
C)Those affected by the Tax Reform Act of 1986 lobbied Congress to legislate special exceptions so that the full impact of the tax rate increase would be felt by the wealthiest Americans.
D)Tax cuts occurred under the administrations of both George H. W. Bush (1989-1993)and Bill Clinton (1993-2001).
E)The tax rate for the highest income bracket decreased from 39.6 percent in 1986 to 28 percent in 1993.

Question 38

Observations collected by agencies such as the National Aeronautics and Space Administration suggest that during the last half century, average global temperatures:

A)did not greatly vary.
B)increased by about 0.74 degree Celsius.
C)decreased significantly by about 3.4 degree Celsius.
D)increased by about 1.2 degree Celsius.
E)decreased by about 0.03 degree Celsius.

Question 39

Identify a true statement about the U.S. health-care system.

A)As of 2017, only five percent of national spending in the United States goes to health care.
B)The United States has the most number of health-care insurance policies in the world.
C)A problem associated with the health-care system is the lack of health-care insurance.
D)U.S. health-care costs have been declining for years.
E)Health care is completely ignored by the federal government.

Question 40

The__________is a joint federal-state program that provides health-care insurance for low-income children.

A)Children's Health Insurance Program
B)Family Social Security Plan
C)Children's Quota Scheme
D)Family Wellness Scheme
E)Department of Education

Question 41

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

A)Inflation
B)A recession
C)Expansion
D)An appreciation period
E)A boom period

Question 42

__________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.

A)Monetary policy
B)Fiscal policy
C)Zero interest-rate policy
D)Keynesian policy
E)Flat tax policy

Question 43

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 _____.

A)CHIP
B)TRICARE
C)Medicare
D)PeachCare
E)Medicaid

Question 44

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

A)fiscal-union policy
B)hard-money policy
C)tight-money policy
D)easy-money policy
E)extra-money policy

Question 45

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

A)Internal Revenue Service
B)Department of the Treasury
C)Federal Deposit Insurance Corporation
D)Congressional Budget Office
E)Federal Reserve System

Question 46

Which of the following statements is true of offshore drilling?

A)As of 2014, offshore drilling has turned the United States into the number-one oil producer in the world.
B)For twenty years, the federal government has endorsed offshore drilling in much of the ocean.
C)Offshore drilling results in the release of radioactive material into the atmosphere.
D)Offshore drilling is also known as hydraulic fracturing.
E)Offshore drilling is a method used by the United States to reduce its reliance on foreign oil.

Question 47

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

A)It involves getting an issue on the political agenda to be addressed by Congress.
B)It involves developing proposed legislation.
C)It requires a consensus on what policy should be adopted.
D)It entails the formulation and adoption of specific plans for achieving a particular goal.
E)It involves congressional hearings and expert studies.

Question 48

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 _____.

A)CHIP
B)PeachCare
C)TRICARE
D)Medicaid
E)Medicare

Question 49

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

A)population growth outpaces the growth in the job market.
B)Obama's stimulus packages expire.
C)population growth outpaces GDP growth.
D)people are brought into the health-care system under Obamacare.
E)millions of baby boomers retire.

Question 50

Which of the following statements is true of nuclear energy?

A)It releases greenhouse gases.
B)It is also known as hydropower.
C)It does not contribute to global warming.
D)It is a renewable source of energy.
E)It does not pose any threat.

Question 51

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?

A)Writ
B)Caucus
C)Subpoena
D)Arbitration
E)Policy

Question 52

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?

A)Medi-Cal
B)BadgerCare
C)Medicaid
D)PeachCare
E)CHIP

Question 53

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

A)Liberals
B)Conservatives
C)Mercantilists
D)Symbolic interactionists
E)Nurses

Question 54

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)_____.

A)noble gas
B)inert gas
C)greenhouse gas
D)dielectric gas
E)insulating gas

Question 55

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?

A)The agenda setting process
B)The policymaking process
C)The policy formulation process
D)The politicization process
E)The issue identification process

Question 56

Which of the following is a renewable source of energy?

A)Nuclear fuel
B)Natural gas
C)Coal
D)Petroleum
E)Solar power

Question 57

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

A)through taxes levied on personal income.
B)by lending money at a fixed interest rate.
C)through imports.
D)by adhering to the easy-money policy.
E)by lowering interest rates.

Question 58

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

A)brought the profits earned by government employees under the nontaxable bracket.
B)enabled angel investors to invest directly in businesses.
C)enabled investors in oil and gas wells to increase their taxable income.
D)allowed interest groups to give soft money to political parties.
E)enabled many wealthy individuals to decrease their tax bills significantly.

Question 59

Identify a newly insured product under the 2014 farm bill.

A)Black pepper
B)Saffron
C)Mustard
D)Flax
E)Sushi rice

Question 60

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

A)An increased unemployment compensation rate
B)An increased Medicaid tax rate
C)A new tax on low-end health policies
D)A new tax on investments for Americans with a low income
E)An increased Medicare tax rate

Question 61

Discuss the provisions of the Agricultural Act of 2014.

Question 62

Discuss Keynesian economics.

Question 63

Discuss the major controversies surrounding climate change. Explain how climate change has impacted U.S. politics.

Question 64

Describe the two problems associated with U.S. health care.

Question 65

Describe the characteristics of entitlement programs. How are entitlements different from discretionary spending?