Deck 13: Domestic Policy

Question 1

Which statement is the key argument of John Maynard Keynes?

A)Government can pull an economy out of a recession by stimulating demand and creating a cycle of increased production and jobs.
B)Government regulations during economic depressions must be lifted because they destroy the already slim profit margin.
C)The economy of size shows that monopolies are the most efficient way to distribute goods throughout a national marketplace.
D)Government can rectify a falling economy by regulating the money supply.

Answer 1

A

Question 2

What is a key power of the Fed?

A)the power to change tax rates
B)the power to lower the budget deficit
C)the power to lower the total national debt
D)the power to expand and contract the amount of credit available in the United States

Answer 2

D

Question 3

Which president warned the nation to beware of the powerful "military-industrial complex"
As he was leaving office?

A)Washington
B)Eisenhower
C)Nixon
D)Reagan

Answer 3

B

Question 4

The federal funds rate refers to the

A)percentage of federal spending that is made up of "uncontrollables," budget items that cannot be controlled through the regular budget process.
B)percentage of federal spending on programs that are controlled through the regular budget process.
C)congressionally determined limit on the amount of national debt that can be issued by
The U.S.Treasury.
D)interest rate on loans between banks.

Question 5

A way to reduce the disparities in wealth between the rich and poor is called a(n)

A)entitlement program.
B)tariff.
C)regressive tax policy.
D)policy of redistribution.

Question 6

Which of the following played an important role in caring for the poor during the nineteenth century?

A)the military
B)the federal government
C)churches and religious organizations
D)the United Nations

Question 7

The Federal Reserve Board is composed of ________ members.

A)4
B)7
C)9
D)11

Question 8

In the United States,the government's right to take private property for public use is
Referred to as

A)coercive federalism.
B)eminent domain.
C)the police power.
D)habeas corpus.

Question 9

When the government sets conditions on companies seeking to sell goods or services to
Government agencies it is called

A)fiscal policy.
B)monetary policy.
C)the contracting power.
D)budgetary policy.

Question 10

While the Federal Reserve's decision to cut the federal funds rate is expected to ________
Economic growth,its decision to raise the federal funds rate is expected to ________
Economic growth.

A)speed up; slow down
B)slow down; speed up
C)have no effect on; speed up
D)have no effect on; slow down

Question 11

The power to raise or lower the tax rate is part of

A)fiscal policy.
B)monetary policy.
C)the contracting power.
D)budgetary policy.

Question 12

If government land is leased or sold for oil and coal exploration at lower-than-market rates,
It is an example of a(n)

A)earmark.
B)subsidy.
C)tax expenditure.
D)earned income tax credit.

Question 13

A five-dollar fine for a parking violation is an example of a

A)criminal penalty.
B)civil penalty.
C)subsidy.
D)tax expenditure.

Question 14

________ are government grants of cash or other valuable commodities,such as land,that are
Used to promote activities desired by government leaders.

A)Contracts
B)Business development funds
C)Categorical grants
D)Subsidies

Question 15

Why have politicians always favored using subsidies to promote certain economic activities?

A)They can be treated as benefits that can be widely spread in response to many demands.
B)They are generally cheaper than other forms of government support.
C)Recipients are always required to pay back the subsidies.
D)Congress does not have to pass legislation in order to provide subsidies.

Question 16

The best way for Federal Reserve Board officials to help boost a stagnant economy is to

A)raise interest rates so that banks can earn more money on the loans they provide to individuals and businesses.
B)lower interest rates so that banks can provide more loans at cheaper rates to individuals and businesses.
C)take money out of circulation so that the dollar becomes more valuable.
D)raise the reserve requirement,restricting the amount of cash and negotiable securities banks must have on hand.

Question 17

An officially expressed purpose or goal backed by a sanction is a

A)public policy.
B)regulation.
C)rule.
D)bill.

Question 18

During the period of the New Deal,________ theory that a government could boost employment
By stimulating demand became quite influential.

A)Adam Smith's
B)Milton Friedman's
C)Friedrich Hayek's
D)John Maynard Keynes's

Question 19

________ usually refers to a fine or some other form of material restitution,while ________
Usually refers to imprisonment.

A)Criminal penalty; civil penalty
B)Civil penalty; criminal penalty
C)Regulatory policy; promotional policy
D)Promotional policy; regulatory policy

Question 20

Between September 2007 and December 2008,the Federal Reserve

A)did not change interest rates at all.
B)raised interest rates from nearly 0 percent to 4.75 percent.
C)raised interest rates from 4.75 percent to 9.5 percent.
D)cut interest rates from 4.75 percent to nearly 0 percent.

Question 21

Unemployment insurance is a ________ program that is funded by the ________.

A)noncontributory; federal and state governments
B)noncontributory; state governments only
C)contributory; federal and state governments
D)contributory; state governments only

Question 22

Congress's 2003 Medicare reform bill

A)added a prescription drug benefit to the package of health benefits provided to
The elderly.
B)eliminated a prescription drug benefit from health benefits provided to the elderly.
C)increased the minimum age of Medicare recipients from 65 to 75 years old.
D)decreased the minimum age of Medicare recipients from 75 to 65 years old.

Question 23

________ are programs where the government provides a tax deduction for spending on
Health insurance and other benefits by both employers and employees.

A)Noncompulsory benefits
B)Tax expenditures
C)Direct services
D)Earned income tax credits

Question 24

Social Security is a good example of

A)outdoor relief.
B)indoor relief.
C)a contributory program.
D)a noncontributory program.

Question 25

In 2017,each individual's required contribution to Social Security was ________ percent of
His or her first $127,200 of income.

A)0
B)1.45
C)6.2
D)7.65

Question 26

Which of the following is the best example of the shadow welfare state?

A)soup kitchens supported by local churches
B)food stamps
C)tax breaks
D)cost-of-living adjustments

Question 27

Tax expenditures

A)were declared unconstitutional by the Supreme Court in 2015.
B)have no impact on the revenue coming in to the national treasury each year.
C)cost the national treasury over $1.2 trillion in foregone revenues each year.
D)contribute over $1.2 trillion in revenue to the national treasury each year.

Question 28

Which of the following would be a good example of a government program that provides an "indexed" social benefit?

A)a federally-run program that provides small business owners who hire a military veteran with a cash payment of $2,500 for every six months of the program's operation
B)a local government program that provides low-income families with a benefits card that can be used to purchase $5,000 of groceries during every year of the program's operation
C)a federally-run program that provides $750 to low-income families in the first year of implementation and that increases payments by 1.5 percent in each subsequent year of the program's operation
D)a state government program that provides $750 every year to low-income families for every month of the program's operation

Question 29

The fact that taxpayers can deduct the amount they paid in interest on a home mortgage from
The income they report on their tax returns is an example of

A)an entitlement program.
B)a contributory program.
C)an earned income tax credit.
D)a tax expenditure.

Question 30

The periodic adjustment of benefits or wages that takes into account the increased cost of
Living is called

A)means testing.
B)indexing.
C)graphing.
D)economic tabulating.

Question 31

The goal of Social Security is to

A)provide health insurance for the elderly and the disabled.
B)ensure a basic income to all workers once they retire.
C)guarantee affordable housing for the elderly and the disabled.
D)cover the basic living expenses of Americans who are permanently or temporarily unemployed.

Question 32

Social Security provides a vital role for younger people by providing

A)survivor benefits to those whose parents die or become disabled.
B)unemployment compensation for those who lose their jobs.
C)health care benefits to those whose jobs do not provide it.
D)food stamps for those who fall under the poverty line.

Question 33

The formula by which Social Security retirement benefits are calculated is designed

A)to redistribute income from well-off to less well-off workers.
B)to provide every worker with the an equal amount of income.
C)to redistribute income from less well-off workers to well-off workers.
D)to proportionately reflect each individual's lifetime contribution to the system.

Question 34

Starting in 2014,a provision in the Affordable Care Act

A)eliminated Medicare taxes for households earning more than $250,000 a year.
B)lowered Medicare taxes for households earning more than $250,000 a year by
0)9 percent.
C)lowered Medicare taxes for households earning more than $250,000 a year by
5)4 percent.
D)increased Medicare taxes for households earning more than $250,000 a year by
0)9 percent.

Question 35

In most states,unemployment benefits last for a maximum of ________ weeks.

A)4
B)26
C)36
D)52

Question 36

When did the American welfare state begin?

A)1890s
B)1920s
C)1930s
D)1960s

Question 37

Most unemployed workers receive approximately ________ percent of their previous wages
Through unemployment insurance.

A)100
B)75
C)50
D)25

Question 38

A(n)________ benefit is one where potential recipients must document their genuine need.

A)indexed
B)contributory
C)means-tested
D)in-kind

Question 39

In 2017,each individual's required contribution to Medicare was ________ percent of all earnings.

A)0
B)1.45
C)6.2
D)7.65

Question 40

Following the crash of 1929,approximately ________ of the workforce immediately
Became unemployed.

A)5 percent
B)20 percent
C)40 percent
D)60 percent

Question 41

Which of the following is a program of forced savings?

A)Medicaid
B)Medicare
C)Temporary Assistance to Needy Families
D)food stamps

Question 42

Medicare is a ________ program; Medicaid is a ________ program.

A)noncontributory; contributory
B)contributory; noncontributory
C)contributory; contributory
D)noncontributory; noncontributory

Question 43

President ________ vowed "to end welfare as we know it."

A)Richard Nixon
B)Ronald Reagan
C)George H.W.Bush
D)Bill Clinton

Question 44

Which of the following can be concluded from the results of the 1996 welfare reforms?

A)The reforms have done little to eliminate welfare dependency.
B)The reforms have reduced the number of people on welfare but have done little to
Reduce poverty.
C)The reforms have led to an increase in the number of welfare recipients.
D)The reforms did not change anything.

Question 45

A cost-of-living adjustment is based on the

A)financing approved by Congress during each session.
B)rate of inflation.
C)relationship between the level of the federal deficit compared to the nation's
Gross national product.
D)changing needs of each recipient.

Question 46

Poor Americans had strong incentives to establish their eligibility for AFDC in the 1970s
Because AFDC recipients

A)were exempted from the military draft.
B)were immediately enrolled in Medicare.
C)received a waiver on sales taxes.
D)automatically received Medicaid and food stamps.

Question 47

The TANF benefits provided by state governments

A)are the same in every state and are slightly above the federal poverty line.
B)vary widely across states but are required to be slightly above the federal poverty line.
C)vary widely across states but are always below the federal poverty line.
D)are the same in every state and are always below the federal poverty line.

Question 48

The main change in welfare policies since 1996 is

A)increased use of noncash assistance.
B)increased benefits.
C)decreased use of means testing.
D)decreased use of job-training programs.

Question 49

Part of the reason why welfare programs became so unpopular between the 1960s and
The 1990s was that

A)many Americans came to believe that welfare recipients did not want to work.
B)the programs were completely taken over by the federal government rather than having input from state and local governments.
C)the programs were completely taken over by state and local governments rather than having input from the federal government.
D)federal judges frequently ruled them to be unconstitutional.

Question 50

Charter schools are best described as

A)schools that a district uses as the median by which to judge test scores.
B)private schools that are funded with tax vouchers.
C)public schools that are free to design special curricula.
D)private schools run by large corporations.

Question 51

Which program was designed to help augment the benefits to the aged,blind,and disabled?

A)Medicaid
B)Medicare
C)Supplemental Nutrition Assistance Program (SNAP)
D)Supplemental Security Income

Question 52

The Personal Responsibility and Work Opportunity Reconciliation Act passed by Congress in 1996

A)allowed states much more discretion in designing their cash-assistance programs to needy families and restricted most legal immigrants from receiving benefits.
B)allowed states much less discretion in designing their cash-assistance programs to needy families and allowed most legal immigrants to receive benefits.
C)allowed states much more discretion in designing their cash-assistance programs to needy families and allowed most legal immigrants to receive benefits.
D)allowed states much less discretion in designing their cash-assistance programs to needy families and restricted most legal immigrants from receiving benefits.

Question 53

Which of the following social policies is currently the most costly to the government?

A)Social Security
B)Supplemental Nutrition Assistance Program (SNAP)
C)public housing assistance
D)Medicare

Question 54

What event brought federal attention to elementary school education?

A)the Soviet Union launching the world's first satellite
B)the Civil War
C)the return of veterans at the end of World War II
D)the Great Depression

Question 55

Medicare was established in

A)1888.
B)1933.
C)1942.
D)1965.

Question 56

What is the shadow welfare state?

A)the welfare that is distributed by local governments and special districts
B)tax breaks-credits,deductions,and preferential tax rates that subsidize social welfare
C)the welfare payments that the government is committed to paying in the future
D)private charities that have filled the gap left by reductions in government spending

Question 57

The Elementary and Secondary Education Act

A)cut federal funding for school districts that performed poorly on the Department of Education's measures of student success.
B)guaranteed that 10 percent of all federal revenue would be spent each year on elementary and secondary education.
C)required that all school districts devote at least 200 hours of instruction to students each year using federally approved curriculum.
D)offered federal aid for education by allocating funds to school districts with substantial numbers of children from unemployed or low-income families.

Question 58

Which of the following programs provides an in-kind benefit?

A)Social Security
B)Medicaid
C)veterans' benefits payments
D)Supplemental Security Income

Question 59

How did the Great Depression change American attitudes about welfare?

A)It showed that the government could efficiently distribute public assistance.
B)It demonstrated that the government could choose between the deserving and undeserving poor in a more objective manner than private charities.
C)It revealed that poverty could be caused by a flawed economic system,not just by personal irresponsibility.
D)It showed that government was not as capable of taking care of the poor as private charities.

Question 60

There are considerable disparities in benefits from state to state in noncontributory programs because

A)many state constitutions prohibit state governments from accepting money for noncontributory programs from the federal government.
B)state governments are given grants-in-aid from the federal government to establish and operate their own programs rather than having one uniform national program.
C)the federal government specifies different levels of assistance to each state based on means testing and indexing.
D)some states choose to only employ contributory programs.

Question 61

How did the deregulation of the mortgage industry in 1999 help produce the housing crisis of
2007 and 2008?

A)It drove housing prices down by preventing too many qualified people from obtaining the mortgages needed to purchase homes.
B)It allowed many new mortgage companies to form,offering "predatory" loans that people could not afford to repay.
C)It made foreclosures almost impossible under the law and allowed many people to stop paying their mortgages with no monetary penalties.
D)It eliminated most mortgage companies and forced potential homeowners to pay cash for their homes.

Question 62

In 2007 and 2008,the government faced a housing crisis caused by

A)sharp rises in house prices.
B)foreclosures.
C)a scarcity of affordable housing.
D)shortages in the timber industry.

Question 63

In a case addressing the constitutionality of the expansion of Medicaid under the Affordable
Care Act,the Supreme Court ruled that

A)Congress does have the power to take existing Medicaid funds away from states if they do not comply with the expansion requirements.
B)Congress does not have the power to take existing Medicaid funds away from states if they do not comply with the expansion requirements.
C)Congress can only take existing Medicaid funds away from a state if the state provides universal health care to its citizens.
D)Congress can only take existing Medicaid funds away from a state if the state is found to have high infant mortality rates.

Question 64

Which of the following groups receives the MOST benefits from government's social policies?

A)the middle class and the elderly
B)the working poor
C)children
D)racial and ethnic minorities

Question 65

What was the primary way federal housing policy changed during the 1980s?

A)The federal government instituted higher caps for rent-controlled apartments.
B)The federal government ended mortgage interest deductions for homeowners.
C)The federal government began building high-rise public housing units for low-income citizens.
D)The federal government began providing low-income citizens with housing choice vouchers that provide support in paying rent in the private market.

Question 66

Which of the following groups receives the FEWEST benefits from government's social policies?

A)the middle class
B)children and the working poor
C)the elderly
D)the wealthy

Question 67

AARP has a membership of approximately ________ members.

A)10,000
B)750,000
C)1 million
D)40 million

Question 68

A homeowner who owes more on the mortgage than the mortgaged property is worth is referred
To as owning a home that is

A)"sequestered."
B)"underwater."
C)"in the red."
D)"in the black."

Question 69

The No Child Left Behind Act of 2001 aimed to promote equality of opportunity with which
Two provisions?

A)a provision that mandated a standardized national test to evaluate all K-12 students and a provision that provided scholarships for students in failing public schools to attend private schools
B)a provision that required schools to show positive test results for all subcategories of children and a provision that allowed parents of children in failing schools to transfer their children to better schools
C)a provision that mandated a standardized national test to evaluate all K-12 students and a provision that created federally run "scholarship academies" for low-income students that scored highly on the national tests
D)a provision that outlawed all standardized testing in K-12 schools and a provision that mandated busing to integrate racially homogenous schools

Question 70

The Affordable Care Act originally required

A)that state governments expand their Medicaid programs to cover more poor people or lose all the Medicaid funds that they receive from the federal government.
B)that state governments eliminate their Medicaid programs or lose all the categorical grants they receive from the federal government.
C)that state governments expand their Medicare programs to cover citizens over the age of 50 or lose all the Medicaid funds that they receive from the federal government.
D)that state governments expand their Medicare programs to cover citizens over the age of 40 or lose all the Medicaid funds that they receive from the federal government.

Question 71

Under the No Child Left Behind Act of 2001,every child in ________ had to be tested yearly
For proficiency in ________.

A)grades 3 through 8; math and reading
B)grades 3 through 8; science and writing
C)grades 1 through 12; math and reading
D)grades 1 through 12; science and writing

Question 72

The "individual mandate" of the Affordable Care Act refers to

A)the requirement that Medicare cover all individuals living in the United States by 2014.
B)a tax credit that is given to all people who are unemployed and do not have health insurance coverage.
C)the requirement that uninsured individuals purchase health insurance.
D)the requirement that health insurance companies accept all applicants,regardless of preexisting conditions.

Question 73

The housing bubble prior to 2007 was driven primarily by

A)the large population growth stemming from legal and illegal immigration between
1990 and 2005.
B)the increased demand for housing that resulted from a dramatic loosening of lending standards.
C)innovations in construction technology that allowed for new homes to be built at drastically reduced costs.
D)the federal government's decision to quadruple the mortgage interest deduction in 2003.

Question 74

The U.S.Public Health Service was founded in

A)1798.
B)1866.
C)1936.
D)1942.

Question 75

The No Child Left Behind Act of 2001

A)substantially increased the federal government's role in elementary and secondary education.
B)substantially decreased the federal government's role in elementary and secondary education.
C)maintained the same role for the federal government in elementary and secondary education that existed between 1791 and 2001.
D)created a new source of governmental power,the Department of Education,
Which is a combination of federal,state,and local authorities.

Question 76

Which of the following statements about K-12 education spending is most accurate?

A)The vast majority of spending for K-12 education comes from the state and local governments,while the federal government contributes a relatively small amount.
B)The vast majority of spending for K-12 education comes from the federal government and local governments,while state governments contribute a relatively small amount.
C)All spending for K-12 education comes from the federal government.
D)All spending for K-12 education comes from state governments.

Question 77

________ is the single-largest medical insurance program in the United States.

A)PhP
B)Anthem
C)Cigna
D)Medicaid

Question 78

The Every Student Succeeds law enacted by Congress in 2015

A)returned control for school performance to the federal government and outlawed any attempts by state governments to disaggregate testing results by race and ethnicity.
B)returned control for school performance to the federal government but created a new requirement that schools disaggregate testing results by race and ethnicity.
C)returned control for school performance to state governments but maintained the federal requirement that schools disaggregate testing results by race and ethnicity.
D)returned control for school performance to state governments but outlawed the federal requirement that schools disaggregate testing results by race and ethnicity.

Question 79

Because there is no provision for long-term care in the United States,________ has become
The de facto program financing nursing home residents when they have exhausted their savings.

A)Social Security
B)Medicare
C)Medicaid
D)the Affordable Care Act

Question 80

The Supreme Court ruled that the "individual mandate" of the Affordable Care Act could not
Be justified as constitutional under the commerce clause because

A)laws passed under the authority granted by the commerce clause must receive two-thirds support in both the House and the Senate.
B)the commerce clause does not apply to interstate commerce and only allows the federal government to legislate on commerce occurring within a single state.
C)the commerce clause applies only to state government laws and not to federal government legislation.
D)the mandate regulated economic inactivity and the commerce clause only allows the federal government to regulate economic activity.