Deck 15: American Domestic Policy

Question 1

What is a policy that deals with how to raise revenue through taxation and how to spend the revenue generated?

A) Budgeting
B) Economic manipulation
C) Political prioritization
D) Social policy
E) Fiscal policy

Answer 1

E

Question 2

Which of the following is NOT part of Professor Charles Lindblom's view of U. S. domestic policymaking?

A) It is described as the "science of muddling through."
B) Policymaking is not a rational and comprehensive process in which decision makers utilize scientific analysis and logic to develop public policy.
C) Policymaking is the result of applying the principles of Matthew 25:31-46 to feed the hungry, house the homeless, clothe the naked, visit the sick and shut in.
D) It introduces the human element and expressly partisan factors into the process.
E) Public policy is the result of reluctant compromises.

Answer 2

C

Question 3

A think tank, which seeks to improve the performance of American institutions and the quality of public policy through the use of social science, is the

A) American Enterprise Institute.
B) Brookings Institution.
C) Cato Institute.
D) Rand Corporation.
E) Progressive Policy Institute.

Answer 3

B

Question 4

In the policymaking process, the stage in which the policy under consideration assumes the authority of law through ratification by Congress or through regulations issued by the relevant administrative agencies is called the ________ stage.

A) evaluation
B) formulation
C) adoption (or legitimation)
D) recognition/definition
E) implementation

Question 5

What is a public interference into the economy that seeks to settle disputes that arise between competing private companies and is designed to break market dominance by one or more companies?

A) Public policy
B) Antitrust legislation
C) Capitalist projection
D) Monopoly advocacy
E) Economic interdiction

Question 6

In the policymaking process, the stage in which a bureaucratic agency translates law action through the adoption of administrative regulations and the regulations and the dedication of agency resources to carry out the policy is called the ________ stage.

A) evaluation
B) formulation
C) adoption
D) recognition/definition
E) implementation

Question 7

What is a "think tank"?

A) A government trust fund that supplies scholarships for low income youth
B) A military intelligence agency
C) An organization that does intensive research and problem solving, either on behalf of other entities, or on their own
D) A group of college professors that form associations to influence law
E) A slang term using a slight to refer to a large university

Question 8

One major factor that served as a catalyst to lift the United States out of the Great Depression of the 1930s was

A) the onset of World War II.
B) the Supreme Court ruling in Brown v. Board of Education.
C) a major depression in Europe.
D) federal deregulation.
E) an increased education level nationwide.

Question 9

In the policymaking process, the formulation stage

A) is one in which the policy is assessed for its worth and effectiveness in meeting its original objectives and goals.
B) is one in which a bureaucratic agency translates law action through the adoption of administrative regulations and the regulations and the dedication of agency resources to carry out the policy.
C) is one in which the policy under consideration assumes the authority of law through ratification by Congress or through regulations issued by the relevant administrative agencies.
D) is one in which various alternative courses for this policy are considered and a preferred course is selected.
E) is one in which objectives to be fulfilled and goals to be pursued through policy are first identified and defined according to how the problem fits within existing policy categories and then prioritized.

Question 10

Which of the following is true of the policymaking process?

A) Congress and the president are most directly involved in the recognition, formulation, and adoption stages when media attention is most intense.
B) The influence of Congress and the president is limited by the practical need to delegate administrative details to agencies with the expertise and resources to handle such matters.
C) Courts may play a role in ensuring that all proper procedures are followed in the formulation of policy and in interpreting rules and regulations.
D) Options A, B, and C are true.
E) None of the above is true.

Question 11

The term laissez faire refers to an economic doctrine that was popular in the eighteenth and nineteenth centuries. The French term literally means

A) "remove the government."
B) "the government is the father."
C) "tax cut."
D) "leave us alone."
E) "life is a circus."

Question 12

Which of the following is NOT true of a recession?

A) The president can dispel adverse economic effects by leadership.
B) In a recession, at first, federal revenues decline as profits decrease and fewer people work.
C) In a recession, economic performance can be a crucial factor in determining which party wins a presidential election.
D) Presidents actually exert only a marginal impact on the economy.
E) In a recession, federal expenditures increase as people claim more entitlements.

Question 13

Consistent increases in the prices of goods and services is referred to as

A) fiscal policy.
B) price fixing.
C) inflation.
D) cost modification.
E) scaling.

Question 14

Which of the following is NOT a purpose of the federal budget?

A) It creates a comprehensive plan laying out what the government will spend for various programs.
B) It sets limits on the profitability of key industries and service companies.
C) It sets priorities for the government.
D) It details how the government expects to raise money.
E) It manages and implements the fiscal policy.

Question 15

A set of laws, regulations, and rules that affect the whole of society is referred to as

A) Keynesian principle.
B) dominance code.
C) statutory control.
D) federalist code.
E) public policy.

Question 16

In the policymaking process, the stage in which the policy is assessed for its worth and effectiveness in meeting its original objectives and goals is called the __________ stage.

A) evaluation
B) formulation
C) adoption
D) recognition/definition
E) implementation

Question 17

What is an economic theory that is based on the principle that taxation, government spending, and other forms of intervention in the economy can help spur the economy forward, even during bad economic times?

A) Trickle down theory
B) Laissez-faire economics
C) Keynesian economics
D) Open economy theory
E) Progressive taxation

Question 18

What is an economic theory, widely accepted prior to the 1930s, that advocates the economy is a self-adjusting mechanism that works best without government interference of any kind?

A) Trickle-down theory
B) Laissez-faire theory
C) Keynesian economics
D) Roosevelt theory
E) Capitalism

Question 19

An economic slowdown characterized by higher unemployment, reduced productivity, or some other negative economic indicators is

A) inflation.
B) recession.
C) stigmatization.
D) economic morbidity.
E) stagnation.

Question 20

In the policymaking process, the recognition/definition stage is

A) one in which the policy is assessed for its worth and effectiveness in meeting its original objectives and goals.
B) one in which a bureaucratic agency translates law action through the adoption of administrative regulations and the dedication of agency resources to carry out the policy.
C) one in which the policy under consideration assumes the authority of law through ratification by Congress or through regulations issued by the relevant administrative agencies.
D) one in which various alternative courses for this policy are considered and a preferred course is selected.
E) one in which objectives to be fulfilled and goals to be pursued through policy are first identified and defined according to how the problem fits within existing policy categories and then prioritized.

Question 21

The most widely accepted and utilized indicator of the overall condition of the stock market on any given day is

A) the Congressional Accounting Office.
B) the White House press releases.
C) the Wall Street Journal.
D) the Dow Jones Industrial Average.
E) the prime rate.

Question 22

A flat tax is one in which

A) the tax rate on an individual's income increases as the amount gets larger.
B) the tax is imposed on personal income and employers.
C) all entities are taxed at the same rate as a proportion of income.
D) the tax exacts a larger percentage of income from a lower wage earner than from a higher income earner.
E) a fee is levied on imports.

Question 23

Which of the following is NOT a factor that could tend to make the reported unemployment rate unreliable?

A) Unemployed citizens who are not seeking employment
B) Determining the rate of temporary seasonal employment
C) Voluntary job changes
D) Routine shifts in economic conditions that help some businesses but hurt others
E) Increased layoffs at the largest employer

Question 24

The __________ measures the sum of the money gained in a given economy by selling exports, minus the cost of buying imports.

A) international confidence rating
B) balance of trade
C) national debt
D) consumer confidence rating
E) federal budget

Question 25

What are guaranteed government benefits that certain citizens depend upon for subsistence?

A) Tax cuts
B) Income tax refunds
C) Entitlements
D) Food stamps
E) Corporate welfare

Question 26

What level does the federal government consider a realistic minimum unemployment rate nationwide?

A) 0.5 percent
B) 1 percent
C) 5 percent
D) 12 percent
E) 20 percent

Question 27

What is one practical use by the federal government for the Consumer Price Index (CPI)?

A) A decrease in CPI means that the government must cut salaries.
B) It helps determines the cost of living increases in federal employee salaries and social security benefits.
C) It helps determines whether to raise taxes.
D) It determines whether the government is paying too much for services.
E) An increase in CPI triggers an increase in the regulation of the largest private companies.

Question 28

The period in which the budget process must be completed from start to finish is

A) January 1 through December 31.
B) the first Monday in November through October 1.
C) July 1 through June 30.
D) the first Monday in February through October 1.
E) October 1 through September 30.

Question 29

How are housing starts, or new construction, used to gauge the national economy?

A) Construction of apartments instead of single family homes indicates less money available in the economy.
B) Declines in housing starts are often one of the first signs of an approaching economic downturn.
C) Building supplies are the most profitable industry in the nation.
D) Decreases in demand for single-dwelling homes usually indicate a higher demand for condominiums and other multi-unit construction.
E) Decreases in the average price of new homes indicate a strong economy.

Question 30

The primary argument of supply-side economic theory is

A) that too much demand for services will cause the supplier side to crash.
B) that there must be a supply of goods before there is a demand.
C) that high taxes take money out of the economy that would otherwise be invested in goods and services.
D) that high taxes give government the funds it needs to stimulate the economy.
E) that the capitalist system is self-destructive.

Question 31

What is the measurement of the public's evaluation of the economy determined by using a public opinion poll that gauges feelings about personal income and financial security?

A) Census
B) Consumer willingness pricing
C) Consumer confidence index
D) The NASDAQ
E) Standard & Poor's 500 Index

Question 32

Which of the following is generally agreed to be an appropriate cause for a federal budget deficit?

A) Temporary unexpected surge in spending due to a national emergency
B) Increase is social entitlement programs for the poor
C) Long-term subsidies for farmers
D) Permanent increase in student tuition assistance
E) Creating permanent tax cuts for all income brackets

Question 33

What is the level that the unemployment rate in the United States rarely exceeds in any given year?

A) 2 percent
B) 4 percent
C) 10 percent
D) 25 percent
E) 40 percent

Question 34

The amount of money spent by the government over and above what it collects in taxes and other revenue in a single year is referred to as

A) budget surplus.
B) budget deficit.
C) federal deprofiting.
D) deflation.
E) positive retail impact.

Question 35

An estimate of the total money value of all of the goods and services produced in a given one-year period is the

A) inflation rate.
B) tax base.
C) gross domestic product.
D) foreign product ratio.
E) ratio of goods to services.

Question 36

The Consumer Price Index (CPI) is a(n)

A) ratio that is based on market values that is used by insurance companies to set rates on businesses.
B) government comparison of prices across major department stores.
C) total of all annual sales in the private retail sector.
D) index of prices for goods and services regularly traded in the U.S. economy.
E) government-issued tool for fixing prices in the private sector.

Question 37

The __________ is an indicator of how badly the economy is performing, measured by adding the inflation rate to the unemployment rate.

A) misery index
B) consumer confidence rating
C) economic depth gauge
D) national pessimism indicator
E) trade deficit

Question 38

The first revenue-raising bill ever passed by Congress

A) sold public land in the Northwest Territory.
B) charged fees for new patents.
C) taxed income.
D) taxed real property.
E) levied tariffs.

Question 39

A tariff is one in which

A) the tax rate on an individual's income increases as the amount gets larger.
B) the tax is imposed on personal income and employers.
C) all entities are taxed at the same rate as a proportion of income.
D) the tax exacts a larger percentage of income from a lower wage earner than from a higher income earner.
E) a fee is levied on imports.

Question 40

What is the total sum of the outstanding debt obligations of the United States government, such as treasury notes and treasury bills?

A) Budget deficit
B) Balance of trade
C) National debt
D) Gross domestic product
E) Monetary system

Question 41

Regulation of the money supply and interest rates by a central bank, such as the U.S. Federal Reserve Board, in order to control inflation and stabilize currency is called

A) fiscal policy.
B) monetary policy.
C) mandatory spending.
D) laissez faire.
E) redistributive tax policy.

Question 42

Which of Herbert Packer's two models describes the criminal justice system as a type of "assembly line justice" because it moves cases quickly and efficiently through the system?

A) Crime control model
B) Due process model
C) Innocence model
D) Litigation model
E) Production system model

Question 43

The social security tax is one in which

A) the tax rate on an individual's income increases as the amount gets larger.
B) the tax is imposed on personal income and employers.
C) all entities are taxed at the same rate as a proportion of income.
D) the tax exacts a larger percentage of income from a lower wage earner than from a higher income earner.
E) a fee is levied on imports.

Question 44

Which of the following is NOT a method or purpose of the Federal Reserve?

A) To set the discount rate
B) To control the supply of money
C) To control inflation
D) To stimulate the economy
E) To control the profits of private banks

Question 45

Social security is one of the topics that legislators from both major political parties are rarely interested in challenging. Why is this?

A) The topic is far too complicated.
B) Most realize that nothing would be done anyway so they are not willing to attempt any solutions.
C) Often referred to as the "third rail," to challenge social security in its current form is often politically fatal.
D) The current system works well.
E) The Social Security Administration is the largest contributor to political campaigns in the United States.

Question 46

The first nation to adopt social insurance policies was

A) the United States.
B) France.
C) England.
D) Sweden.
E) Germany

Question 47

President Bill Clinton vowed to

A) "end welfare as we know it."
B) "end the national healthcare system."
C) "end the military career of any gay or lesbian soldiers."
D) expand the Aid to Families with Dependent Children (AFDC) program.
E) privatize Social Security.

Question 48

Open market operations are when the Federal Reserve Bank buys or sells

A) credit card debt.
B) subprime mortgages.
C) defaulted loans.
D) government securities.
E) mutual funds.

Question 49

A system found in some European nations in which full access to health care is provided to citizens at government expense.

A) Universal health care
B) Health maintenance organization (HMO)
C) Government supplement
D) Socialist medicine
E) Insurance driven

Question 50

Which of the following is a tax-favored plan that provides a large incentive for mutual fund owners?

A) IRA
B) Roth IRA
C) Social Security
D) 401(k) plan
E) Keogh plan

Question 51

___________ began the era where people thought the government could and should be used as a positive influence on society.

A) The Civil War
B) World War I
C) The Great Depression
D) World War II
E) The Civil Rights movement

Question 52

Approximately how long after the creation of social security were Medicare and Medicaid added to the American social welfare system?

A) 10 years
B) 20 years
C) 30 years
D) 40 years
E) 50 years

Question 53

Medicare is a Federal program that provides health insurance for the

A) elderly.
B) poor.
C) working class.
D) bureaucrats.
E) farmers and ranchers.

Question 54

Which of the following is NOT true of discretionary spending?

A) It is a form of federal spending that Congress can modify or eliminate in any given year.
B) It includes entitlements such as Medicare and Social Security.
C) It includes spending on education, the environment, and national defense.
D) Currently, under the Obama administration, discretionary spending is at 15 percent of the overall budget.
E) Discretionary spending lies within the president's immediate influence.

Question 55

An economic system in which all or most of the means of production are owned by the community as a whole is called

A) socialism.
B) capitalism.
C) welfare state.
D) democracy.
E) communism.

Question 56

Social Security was created in the

A) 1790s.
B) 1860s.
C) 1930s.
D) 1960s.
E) 1970s.

Question 57

The amount of money a government agency will actually spend during a fiscal year is called

A) budget deficit.
B) mandatory spending.
C) discretionary spending.
D) outlays.
E) budget surplus.

Question 58

Medicaid was designed to provide healthcare to the

A) aged and ill.
B) poor.
C) working class.
D) bureaucrats.
E) farmers and ranchers.

Question 59

What is the primary social purpose for the rules and practices of the criminal justice system?

A) To incarcerate criminal offenders and keep the streets safe for innocent citizens
B) To make it difficult to convict a person charged with a crime
C) To strike a careful balance between maintaining public order and protecting individual freedoms
D) To restrict abuse of police power in the name of crime prevention
E) To protect crime victims

Question 60

The American welfare state began in the

A) 1910s.
B) 1930s.
C) 1950s.
D) 1970s.
E) 1990s.

Question 61

What is the purpose of the Federal Reserve System? Give an example of a monetary decision or policy made by the Federal Reserve. Who would benefit positively from such a decision? Who would benefit negatively?

Question 62

Describe the differences between a progressive tax, a regressive tax, and a flat tax. Give examples of the individuals or groups that benefit most from each of these taxing formats.

Question 63

Define the two economic system theories of capitalism and socialism. How do they differ? Using these two theories, describe how the United States has tended to differ with some European nations, such as Sweden, in the role of a central government as a provider of social benefits.

Question 64

Fully explain the process through which the Federal Reserve Board generates and applies monetary policy.

Question 65

Describe the impact of entitlements on the budgetary process.

Question 66

Discuss the status of the United States as a welfare state. How has it evolved? What has it accomplished? Where has it failed?

Question 67

Compare and contrast the crime control model and the due process model of the criminal justice system. Apply criticisms of the criminal justice system to evaluate the effectiveness of each model.

Question 68

Discuss the pros and cons of modern education policy. How does No Child Left Behind address critical issues in education? What are its shortcomings?

Question 69

Which of the following statements about the Patient Protection and Affordable Care Act is incorrect?

A) It penalizes most citizens who do not obtain health care insurance.
B) It expanded Medicaid.
C) It was amended a week later by the Health Care and Education Reconciliation Act.
D) It provides a universal health care system similar to that found in European countries.
E) The main federal legislation for this act passed in 2010.

Question 70

Widely used in the 1980s and 1990s, but have since increasingly come under stricter legislative control, __________ is a health care arrangement in which prepaid group arrangements limit costs through flat monthly rates.

A) Aid to Dependent Families
B) pay-as-you-go plans that charge premiums only when used
C) Medicaid
D) state-funded children's care plans
E) health maintenance organizations (HMOs)

Question 71

Explain how the Social security system works. What are some of the biggest concerns with the Social Security system? When did the system start to deteriorate and what milestones are coming up that may test its solvency? What are some alternatives for retirees?

Question 72

Discuss the major criticisms about American health care system. How do we compare to other countries that institute universal health care? What does the Patient Protection and Affordable Care Act of 2010 hope to accomplish?

Question 73

What is the most common criticism about the health care system in the United States?

A) There is a high level of ineffective medical care.
B) A disproportionate number of physicians are concentrated in rural areas at the expense of urban areas.
C) There is too much government intervention.
D) The cost is excessive.
E) Excess of physicians creates too much competition.

Question 74

Which of the following is a primary argument by supporters of the current system of American health care in which most patients secure health care insurance on their own?

A) The government cannot be trusted to make medically related decisions.
B) Overall it keeps taxes lower.
C) This system allows more choice in doctors and facilities than citizens in most other parts of the world.
D) Other federal initiatives such as Medicaid are very ineffective.
E) It is the less expensive alternative.