Deck 15: American Domestic Policy

Question 1

What is an economic theory that is based on the principle that government should increase spending when economic times are bad as a way of raising total demand?

A) trickle-down theory
B) laissez-faire economics
C) Keynesian economics
D) open economy theory
E) progressive taxation

Answer 1

C

Question 2

An economic slowdown is referred to as ___________________.

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

Answer 2

B

Question 3

The primary instrument by which the federal government manages fiscal policy is the __________________.

A) Federal Reserve Bank
B) Brookings Institute
C) issuance of executive orders
D) federal budget
E) cap and trade initiative

Answer 3

D

Question 4

Which policy deals with how to raise revenue through taxation and how to spend the revenue generated?

A) monetary policy
B) economic manipulation
C) political prioritization
D) social policy
E) fiscal policy

Question 5

The primary argument of supply-side economic theory is that _______________________________.

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

Question 6

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 7

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 8

In the policymaking process, the recognition-definition stage is the one in which _____________________.

A) The policy is assessed for its worth and effectiveness in meeting its original objectives and goals.
B) A bureaucratic agency translates law action through the adoption of administrative regulations.
C) The policy under consideration assumes the authority of law through ratification by Congress.
D) Various alternative courses for this policy are considered and a preferred course is selected.
E) Goals are identified and defined according to how the problem fits within existing policy categories.

Question 9

Which economic theory, widely accepted prior to the 1930s, advocates less intervention in the economy, allowing businesses to conduct their affairs more or less free from governmental regulation?

A) trickle-down theory
B) laissez-faire theory
C) Keynesian economics
D) Roosevelt theory
E) capitalism

Question 10

Consistent increase 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 11

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) an association of college professors that lobby Congress
E) a slang term using a slight to refer to a large university

Question 12

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 13

Which of the following is involved in the policymaking process?

A) congressional committees
B) the bureaucracy
C) think tanks
D) interest groups
E) All of these choices are correct.

Question 14

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 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

Which of the following is not an example of social policy?​

A) ​crime policy
B) ​welfare policy
C) ​Social Security policy
D) ​health care policy
E) ​foreign policy

Question 17

According to Keynesian economic theory, what is the key determinant of whether the economy is performing well?

A) total demand for goods and services
B) consumer confidence in the economy
C) governmental determination
D) housing costs
E) inflation

Question 18

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 19

Which of the following best describes the term social policy?​

A) ​lawmaking that is the direct result of lobbying by social interest groups
B) ​social attitudes on a political issue, at a specific point in time and in response to a specific question
C) ​rules and regulations pertaining to the quality of life, welfare, and relations of human beings
D) ​policy made by direct popular vote within each state
E) ​Supreme Court decisions regarding the Ninth Amendment to the U.S. Constitution

Question 20

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) All of these choices are correct.
E) None of these choices is correct.

Question 21

When the amount of money spent by the government exceeds what it collects in taxes and other revenue in a single year, it is referred to as a _______________________.

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

Question 22

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 multiunit construction.
E) Decreases in the average price of new homes indicate a strong economy.

Question 23

The unemployment rate measures the ​____________________________________.

A) ​percentage of people unemployed and actively looking for work in the U.S. labor market
B) ​number of people not currently employed
C) ​rate of college students without employment one year after graduation
D) ​percentage of workers worldwide with no job
E) ​number of retirees in the United States

Question 24

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 25

What is the measurement of the public's evaluation of the economy, as determined by a representative sample of Americans?

A) census
B) consumer willingness pricing
C) consumer confidence index
D) the NASDAQ
E) Standard & Poor's 500 Index

Question 26

​What is the total sum of the outstanding debt obligations of the U.S. government?

A) budget deficit
B) balance of trade
C) national debt
D) gross domestic product
E) monetary system

Question 27

If Congress and/or the President does not agree to a budget, and Congress does not pass a continuing resolution, what will happen?​

A) ​the president has the authority to continue spending
B) ​the Supreme Court will intervene
C) ​the federal government will shutdown
D) ​the federal government will operate using state funds
E) ​Congress is dissolved and new elections are held

Question 28

The budget year for the federal government 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

The amount by which the U.S. government's revenue exceeds its spending in a given fiscal year​ is referred to as _______________.

A) ​a budget surplus
B) ​a balanced budget
C) ​the national debt
D) ​inflation
E) ​a budget deficit

Question 30

Which of the following is not a factor that makes full employment an elusive goal?

A) unemployed citizens who are not seeking employment
B) seasonal factors
C) voluntary job changes
D) routine shifts in economic conditions
E) temporary holiday jobs

Question 31

The first revenue-raising bill ever passed by Congress was ___________.

A) an income tax
B) Social Security
C) an excise tax
D) a property tax
E) a tariff

Question 32

If Congress does not agree on a final budget by the time a new fiscal year begins, it may be forced to pass a(n) ______________ to allow the government to keep running while final budget negotiations continue​.

A) ​continuing resolution
B) ​appropriations act
C) ​settlement bill
D) ​article of impeachment
E) ​declaration of intent

Question 33

As part of the executive office of the president, which of the following determines whether an agency's budget proposals are in accordance with the president's program and then uses the proposals to prepare an overall budget for the coming fiscal year​?

A) ​office of administration
B) ​office of the vice president
C) council of economic advisors
D) ​office of management and budget
E) ​office of legislative affairs

Question 34

What was the purpose of The Budget and Accounting Act of 1921?

A) ​transfer from the president to Congress all budget authority
B) ​make the president formally responsible for initially formulating the national budget
C) ​establish the Federal Reserve Bank
D) ​create the Department of Treasury as an executive department
E) ​authorize the House Appropriations Committee to initiate the national budget process

Question 35

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 for Social Security recipients.
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 36

Which of the following best describes a tariff?

A) a tax rate on an individual's income
B) a tax imposed on wages
C) a tax on the cost of goods sold
D) a tax applied to personal property
E) a tax levied on imports

Question 37

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 38

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 39

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

A) congressional accounting office
B) White House press releases
C) Wall Street Journal
D) Dow Jones Industrial Average
E) prime rate

Question 40

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 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

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 43

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 44

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

A) 10 years
B) 30 years
C) 50 years
D) 75 years
E) 100 years

Question 45

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 46

Spending that is not controlled by annual budget decisions, but rather by legislation that establishes eligibility requirements is referred to as​ _______________________.

A) ​mandatory spending
B) ​outlays
C) ​discretionary spending
D) ​budget surplus
E) ​monetary policy

Question 47

The first nation to adopt social insurance policies was _________________.

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

Question 48

An economic system in which all or most of the means of production are privately owned under competitive conditions is referred to as _________________.

A) ​capitalism
B) ​socialism
C) ​fascism
D) ​conservatism
E) ​command economy

Question 49

The Social Security tax is one in which ____________________________.

A) the tax rate on an individual's income increases as the amount of income gets larger
B) the tax is imposed on personal income and employers
C) all entities are taxed at the same dollar amount
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 50

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

A) to ensure no crime occurs
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 51

Perhaps the single most important responsibility of the Fed is to set the "discount rate," which is​ the _______________.

A) discount given to federal employees for the fiscal year
B) ​amount of money to be printed in a given year
C) ​rate charged directly to borrows for loans
D) ​rate charged to member banks to borrow short-term funds
E) ​rate charged to federal employees for conducting business at the Fed

Question 52

​A tax that charges all individuals the same amount, and therefore, exacts a larger percentage, of income from the lower-wage earner than it does from the high-income earner, is referred to as a _____________ tax.

A) ​flat
B) ​regressive
C) ​progressive
D) ​Social Security
E) ​dependency

Question 53

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 54

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 55

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 56

Taxes that are directed toward the benefit of all citizens​ are referred to as _____________________.

A) ​redistributive
B) ​distributive
C) ​flat
D) ​regressive
E) ​progressive

Question 57

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, discretionary spending makes up 15‑20 percent of the overall budget.
E) Discretionary spending lies within the president's immediate influence.

Question 58

___________ created a significant change in attitudes about welfare programs in America, leading to more government involvement.

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

Question 59

In which of Herbert Packer's two models would a guilty defendant be most likely to go free?

A) ​crime control model
B) ​due process model
C) ​innocence model
D) ​litigation model
E) ​production system model

Question 60

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 61

Explain the difference between "mandatory spending" and "discretionary spending." Describe how each is affected by the budget process and what influence the president and Congress have on each other.

Question 62

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 to understand.
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 63

Describe the initial purpose of the Social Security system. Explain how the system works. What are some of the biggest concerns with the Social Security system? What do you believe are some alternatives for retirees?

Question 64

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 65

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 66

​What was the purpose of the Social Security system, as proposed by FDR?

A) ​to provide a monthly income for all Americans
B) ​to supplement the income of those who make important contributions to society
C) to provide health care to the elderly
D) ​to provide limited health care to the poor
E) ​to create a pay-as-you-go "old age pension" for workers

Question 67

Provide an understanding of the term monetary policy, and describe the role 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 68

Define the term public policy. Describe the five stages of the policymaking process.

Question 69

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.

Question 70

Medicaid was designed to provide health care to the _______________.

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

Question 71

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 was passed in 2010.

Question 72

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 73

Discuss the status of the United States as a welfare state. How has it evolved? What has it accomplished? How does it differ from European models of the welfare state?

Question 74

Describe the differences between a progressive tax, a regressive tax, and a flat tax. Provide examples of each, and explain how individuals or groups are affected by each of these taxing formats.

Question 75

​Currently, why is there concern about the Social Security system?

A) There will not be enough revenue generated by current workers to cover expenditures to the large baby boom generation.
B) Public opinion polls show that Social Security is a very unpopular program among voters.
C) Retirees withdraw too much within the first 10 years of retirement, causing government to step in and assist.
D) ​Most politicians are actively working to end the program.
E) ​Revenue generated through the program is now being used for health care purposes.

Question 76

Define the term fiscal policy. Describe America's evolution of thought with regard to this policy, from laissez-faire, to one based in Keynesian economic theory, to "supply-side economics." Which do you believe is the best approach for America, and why?

Question 77

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 78

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

A) Universal health care
B) Health maintenance organization (HMO)
C) Government supplement
D) open market system
E) Insurance driven