Deck 17: Economic and Social Policy

Question 1

Which of the following is true of the Affordable Care Act,colloquially known as Obamacare?

A)It involves a national takeover of health care.
B)It provides universal coverage to all Americans.
C)It provides universal coverage to all U.S.residents.
D)It involves a single-payer health care system.
E)It requires Americans who are not covered to buy health insurance or pay a penalty.

Answer 1

E

Question 2

Food stamps/vouchers generally fall within which policy area?

A)education
B)criminal justice
C)welfare
D)health care
E)environment

Answer 2

C

Question 3

The Social Security program was adopted during what event or period?

A)the Vietnam War
B)Watergate
C)the Reagan administration
D)the Great Society
E)the Great Depression

Answer 3

E

Question 4

The American Recovery and Reinvestment Plan aimed to do which of the following?

A)eliminate jobs in the financial sector
B)close underperforming schools
C)create jobs and stimulate spending
D)refinance the national debt
E)reduce Congressional salaries

Question 5

Inflation is best understood as the rate at which __________.

A)gross domestic product expands
B)prices for goods and services decrease
C)prices for goods and services increase
D)the federal government increases taxes to raise revenue
E)the Federal Reserve Board expands the money supply

Question 6

Medicare is a program in which policy area?

A)welfare policy
B)health policy
C)education policy
D)environmental policy
E)foreign policy

Question 7

How does the U.S.welfare system compare with welfare systems in most European countries?

A)The United States has a younger and smaller welfare system compared to most European countries.
B)The United States has a younger and larger welfare system compared to most European countries.
C)The United States has an older and smaller welfare system compared to most European countries.
D)The United States has an older and larger welfare system compared to most European countries.
E)The United States modeled its welfare system after European systems,so they are of similar age and size.

Question 8

Inflation is best understood as the rate at which __________.

A)gross domestic product expands
B)prices for goods and services decrease
C)prices for goods and services increase
D)the federal government increases taxes to raise revenue
E)the Federal Reserve Board expands the money supply

Question 9

Which of the following is a means-tested program?

A)Social Security
B)No Child Left Behind
C)Medicare
D)Temporary Assistance for Needy Families
E)the Elementary and Secondary Education Act

Question 10

What do economists use gross domestic product to measure?

A)the rate of government spending in the economy
B)the rate of tariffs applied to goods imported into the United States
C)the total impact of import revenues on the domestic economy
D)the total value added by government expenditures in the economy
E)the total value of goods and services produced in the economy

Question 11

Laissez-faire economics holds which of the following to be true?

A)The government should actively intervene in the economy.
B)The government should not take an active role in the economy.
C)The government should do everything possible to reduce unemployment.
D)The government should lower interest rates during a recession.
E)The government should raise interest rates during a recession.

Question 12

The main goal of fiscal policy is __________.

A)to affect how much money is available to foreign governments for investment and its cost
B)to affect how much money is available to state governments for capital projects
C)to determine how much interest the government will pay on the federal debt
D)to stimulate the economy by increasing the number of exports into the United States
E)to use taxes and government spending to help stimulate or slow down economic growth

Question 13

What has happened to the poverty rate in the United States since the 1970s?

A)It has steeply declined.
B)It has trended downward.
C)It has steeply increased.
D)It has trended upward.
E)It has remained relatively constant.

Question 14

The total market value of all goods and services produced in an area during a year is termed which of the following?

A)greatest national product
B)gross domestic product
C)maximum national product
D)minimum domestic product
E)national income product

Question 15

Which of the following pieces of legislation is most likely to ensure that poor people have health insurance?

A)the Affordable Care Act,colloquially known as Obamacare
B)the Social Security Act
C)Medicare
D)Medicaid
E)the American Recovery and Reinvestment Act

Question 16

Which of the following is true of current welfare policy in America?

A)Many people collect welfare benefits indefinitely.
B)U.S.welfare expenditures exceed those of European democracies.
C)The welfare system in the United States is quite limited.
D)Welfare ended when Aid to Families with Dependent Children was discontinued.
E)Welfare recipients may only receive benefits for ten years or less.

Question 17

Which of the following strategies does monetary policy dictate in inflationary periods?

A)Congress should balance the federal budget.
B)Congress should increase spending.
C)Congress should raise taxes on citizens.
D)The Federal Reserve should lower interest rates.
E)The Federal Reserve should raise interest rates.

Question 18

What is the main purpose of monetary policy?

A)to affect how much money is available to businesses and banks
B)to control the amount of public debt sold to foreign states
C)to control the interest rates on money lent to foreign states
D)to equalize income disparity among citizens of the United States
E)to expand the government's revenue base so as to reduce the deficit

Question 19

Which of the following best reflects the current Republican view regarding national involvement in ensuring health care coverage?

A)Republicans have called for the repeal of the Affordable Care Act,colloquially known as Obamacare.
B)Republicans have called for improvements to the Affordable Care Act,colloquially known as Obamacare.
C)Republicans intend to replace the Affordable Care Act,colloquially known as Obamacare,with a single-payer system.
D)Republicans have avoided taking a position on health care.
E)Republicans were initially against the Affordable Care Act,colloquially known as Obamacare,but they now support it.

Question 20

The public debt is most associated with __________.

A)health care policy
B)environmental policy
C)education policy
D)economic policy
E)social policy

Question 21

Which of the following is a point in favor of federal involvement in social policy?

A)The states have a long-standing tradition of extending rights to citizens.
B)The states are often viewed as laboratories of democracy.
C)The federal government can help to reduce inequality.
D)Federal legislation often increases inequality.
E)Federal power is usually transferred to the states.

Question 22

Which of the following is true in the United States of how government handles ensuring health care to the poor and the elderly?

A)Medicare provides health care to the poor,and Medicaid provides health care to the elderly.
B)Medicare provides health care to the elderly,and Medicaid provides health care to the poor.
C)Medicare and Medicaid provide health care to all Americans regardless of wealth or age.
D)Medicare replaced Medicaid in order to provide health care to poor people as well as the elderly.
E)Medicaid replaced Medicare in order to provide health care to poor people as well as the elderly.

Question 23

Which of the following statements helps to explain why politicians and other governmental officials routinely attempt to address the future of Social Security?

A)Outlays have increased dramatically since the program began.
B)Outlays have decreased dramatically since the program began.
C)Fewer people now receive Social Security benefits than at any time in history.
D)The number of people receiving Social Security has remained constant.
E)Social Security was originally intended as a temporary program.

Question 24

If the Federal Reserve board needed to curb inflation,it would most likely __________.

A)lower interest rates
B)lower taxes
C)increase government spending
D)raise interest rates
E)raise taxes

Question 25

How does the welfare system in the United States compare to other democracies?

A)The United States has a less developed welfare system than other democracies.
B)The United States has a more developed welfare system than other democracies.
C)The United States has a very similar welfare system to many other democracies.
D)The United States has no welfare system,while other democracies have developed welfare systems.
E)The United States has a limited welfare system that is still more developed than other democracies.

Question 26

Which of the following is most accurate regarding the future of Social Security?

A)Social Security will likely need adjustments to meet future demands.
B)Social Security is expected to run out of money by 2014.
C)Social Security is expected to be financially stable for the next 50 years.
D)Social Security is expected to be financially stable for the next 100 years.
E)Social Security will be replaced by a private investment program beginning in 2015.

Question 27

If the Federal Reserve wanted to slow the rate of economic growth,it would most likely __________.

A)encourage the president to lower taxes
B)increase interest rates
C)encourage the president to raise taxes
D)increase the money supply
E)lower interest rates

Question 28

Which of these resulted from the Great Depression?

A)The federal government cut Social Security benefits because it lacked adequate funds.
B)The federal government assumed new responsibilities for the management of economic matters.
C)The states assumed new responsibilities for the management of national economic matters.
D)The federal government devolved responsibility for solving the economic crisis to the states.
E)The federal government took a laissez-faire approach when dealing with economic matters.

Question 29

According to Figure 17.1,which of the following is a reason why Social Security reserves are expected to decline?

A)More younger workers will be claiming Social Security benefits.
B)More younger workers will privately invest their Social Security payroll taxes.
C)The ratio of current workers to retired workers is expected to increase.
D)The Social Security cost rate is expected to increase.
E)The Social Security income rate is expected to dramatically decline.

Question 30

Which of the following helps explain the difficulty in solving the long-term debt problem in the United States?

A)The decline in the strength of American political parties in recent years has made compromise in this area highly unlikely.
B)The decline in social spending has reduced the level of economic growth in the United States.
C)The Democratic Party has been captured by special interest groups that benefit from high levels of debt.
D)The Republican Party refuses to reduce the level of taxes that restrict economic growth in society.
E)The rise of extreme partisanship in recent years has made compromise in this area highly unlikely.

Question 31

What distinguishes a means-tested program from a social insurance program?

A)A means-tested program extends benefits based upon age categories,while a social insurance program provides benefits based upon immediate need.
B)A means-tested program only extends to benefits for the elderly,while a social insurance program extends benefits to everybody.
C)A social insurance program extends benefits only to the working poor,while a means-tested program extends benefits to everyone,regardless of social class.
D)A social insurance program provides benefits based upon demonstrated need,while a means-tested program provides benefits based upon lifetime contributions.
E)A social insurance program provides benefits based upon lifetime contributions,while a means tested program provides benefits based upon demonstrated need.

Question 32

U.S.monetary policy involves which of the following?

A)import and export policies
B)interest rates and the money supply
C)supply-side economics
D)NAFTA and the balance of trade with Canada
E)the public/national debt and the annual deficit

Question 33

According to Figure 17.3,what has been the long-term trend in charter schools?

A)They have been decreasing in number.
B)They have been increasing in student diversity.
C)They have been increasing in number.
D)They have been receiving less state funding.
E)They have been receiving more federal funding.

Question 34

Which of the following best articulates why U.S.dependence on foreign oil could be viewed as a national security issue?

A)The United States has become energy independent during the last decade.
B)The need for oil is expected to decline during the next two decades.
C)Solar power is now more prevalent in the United States than in any other country.
D)The United States only imports oil from its allies.
E)The United States spends billions on oil from nations that might be hostile.

Question 35

Which of the following provides one explanation for why Medicare costs have risen in recent years?

A)People now are in better health than were people in the past.
B)People rely on their own private insurance to supplement Medicare.
C)Most people on Medicare also receive Medicaid benefits.
D)Doctors charge less for many services than they did in the past.
E)People live longer today than they did in the past.

Question 36

Which of the following provides one explanation for why the federal government has been involved in education?

A)The federal government has responded to criticisms of U.S.educational performance.
B)The federal government has left all educational matters to the states.
C)The federal government has left all educational matters to the local governments.
D)Private schools now outnumber public schools in the United States.
E)U.S.student performance in math and science now exceeds nearly every other developed nation.

Question 37

Students in the United States typically __________.

A)perform better on both math and science tests than students in other countries
B)perform equally on math and science tests compared to students in other countries
C)perform worse on both math and science tests than students in many other countries
D)perform better on math tests but worse on science tests compared to students in other countries
E)perform better on science tests but worse on math tests compared to students in other countries

Question 38

Crises such as Hurricane Katrina or the financial collapse that began in 2008 often result in which of the following?

A)no changes to existing policies
B)public recognition that government has no control over most crises
C)a decrease in the public's interest in the media coverage of crises
D)exclusion of federal involvement in crises that affect states
E)focus on the crises and on potential solutions by the public and policy makers

Question 39

Which is true of presidents dealing with economic crises?

A)Both Democratic and Republican presidents have taken actions to stimulate the economy.
B)Democratic presidents have taken actions to stimulate the economy,but Republican presidents have not.
C)Republican presidents have taken actions to stimulate the economy,but Democratic presidents have not.
D)Neither Democratic nor Republican presidents have taken actions to stimulate the economy.
E)No presidents have had to deal with economic crises.

Question 40

In general,a recession does which of these?

A)generates a response by state governments
B)generates a response by the federal government
C)lasts at least a year
D)leads to higher inflation
E)reduces the unemployment level

Question 41

Which of the following explains why some people have suggested raising the eligibility age for Social Security?

A)Social Security has had a surplus for the past decade.
B)Social Security benefits have been cut in recent years.
C)Social Security may not be sustainable without cutting benefits.
D)Social Security may not be sustainable given the current number of children in the program.
E)Social Security may not be sustainable given the number of poor people in the program.

Question 42

What is the long-term concern about the Social Security Trust Fund?

A)The rate of Social Security payroll taxes will continue to decrease.
B)The number of current retirees contributing to the fund will continue to decrease.
C)The working poor will not have access to Social Security medical benefits.
D)There will be too few workers contributing to support the increasing number of retirees.
E)There will be too many people paying into the Social Security system.

Question 43

Which of the following explains why the federal government has been involved in problem solving following disasters like Hurricane Katrina?

A)The states where the disaster occurs are more knowledgeable about the area.
B)The states where the disaster occurs are better equipped to deal with the situation.
C)The federal government is more knowledgeable about the areas where the disaster occurs.
D)The federal government has the resources to deal with the situation.
E)The federal government has the ability to prevent the states from creating public policy.

Question 44

Which of the following explains the welfare state in America?

A)The American political culture favors an extensive welfare state.
B)The American political culture opposes an extensive welfare state.
C)Few Americans are in poverty,so welfare would not benefit many people.
D)Most politicians favor welfare expansion,but their constituents do not.
E)Most constituents and politicians favor welfare expansion.

Question 45

What do Medicare,Medicaid,and Social Security have in common?

A)They are all health care programs.
B)They are all designed to help keep or get people out of poverty.
C)They all provide financial assistance only to senior citizens.
D)They all provide food stamps to people in poverty.
E)They all provide small business loans to get the poor out of poverty.

Question 46

Which of the following provides evidence for why universal health care has not been adopted in the United States?

A)Liberals want insurance provided by private companies only.
B)Conservatives oppose what they consider socialized medicine.
C)Nearly all Americans currently have health insurance.
D)Many Americans currently lack health insurance.
E)The United States has one of the world's highest ranked health systems.

Question 47

Upon taking office in 2009,which of the following did President Obama advocate to deal with the economic crisis?

A)dropping interest rates
B)increasing government spending
C)lowering taxes
D)raising interest rates
E)reducing taxes

Question 48

Which of the following is accurate with regard to the public/national debt?

A)The public/national debt as a percentage of GDP has drastically increased in recent years.
B)The public/national debt as a percentage of GDP has not changed in the past decade
C)The public/national debt is a product of balanced federal budgets.
D)The public/national debt is not affected by external events such as war or a natural disaster.
E)The public/national debt has only increased under Democratic presidents.

Question 49

Which of the following is an argument in favor of federal involvement in education?

A)finding that states do a good job of ensuring educational equality across the states
B)finding that states do a good job of ensuring educational equality across school districts
C)finding that inequality exists across schools based on race,economics,and gender
D)finding that equality exists across schools based on race,economics,and gender
E)finding that states are better able to handle educational matters than the federal government

Question 50

Which of the following could be seen as evidence in support of the passage of the Affordable Care Act,colloquially known as Obamacare?

A)Private insurance companies are adequate to provide health care coverage to nearly all Americans.
B)Uninsured Americans have access to health care because hospitals are required to treat patients with life-threatening conditions.
C)Health care costs have risen substantially over the past few decades.
D)Health care costs have remained stable over the past few decades.
E)Health care costs have declined over the past few decades.

Question 51

Which of the following is necessary information to determine eligibility for a means-tested program?

A)the number of years a person has worked before retirement
B)the number of years a person has been on Social Security
C)the number of years a person has been in the military
D)the income level of the person in question
E)the retirement age of the person in question

Question 52

Under which of the following conditions would increasing the age at which people become eligible for Medicare make sense?

A)if life expectancy decreases
B)if life expectancy increases
C)if Medicaid expands to include a greater number of people
D)if the Affordable Care Act,colloquially known as Obamacare,is repealed
E)if the Affordable Care Act,colloquially known as Obamacare,is strengthened

Question 53

Which of the following statements plausibly explains why Social Security is a prominent issue in many elections?

A)Young people are likely to follow politics and are likely to vote.
B)Young people are likely to follow politics,but they are unlikely to vote.
C)Seniors are likely to follow politics and are likely to vote.
D)Seniors are likely to follow politics,but they are unlikely to vote.
E)Seniors are unlikely to follow politics,but they do vote.

Question 54

Which of the following best explains the reason for continued public support for Social Security?

A)Social Security provides funds to only those people whose income falls below a certain level when they retire.
B)Social Security provides funds to retirees who paid in to the system,and it serves as a safety net to reduce poverty among seniors.
C)Social Security provides options for seniors to invest in private markets to supplement retirement income.
D)Social Security provides health care coverage to all seniors when they retire.
E)Social Security provides health care coverage to low-income seniors when they retire.

Question 55

If all citizens who are 65 years and older are eligible for Medicare,but only some citizens are eligible for Medicaid because they lack certain resources,which of the following is also true?

A)Both Medicare and Medicaid are principally retirement programs.
B)Both Medicare and Medicaid are means-tested programs.
C)Medicare is an entitlement program,but Medicaid is a means-tested program.
D)Medicare is a means-tested program,but Medicaid is an entitlement program.
E)Medicare and Medicaid have been replaced by Temporary Assistance for Needy Families.

Question 56

Entitlement programs are designed to do which of the following?

A)get the poor out of poverty
B)help ensure equality in public school funding
C)help provide income to low-earning households
D)provide financial aid to poor college students
E)provide benefits to all qualifying individuals

Question 57

If a government wanted to use monetary policy to increase economic growth,which of the following steps should be taken?

A)Decrease interest rates to increase the amount of money in supply.
B)Increase the amount of foreign currency kept on reserve in U.S.banks.
C)Increase the amount of public revenue for investment by raising taxes.
D)Increase the government spending on public works projects.
E)Print a larger amount of money to increase the money supply.

Question 58

Which of these statements best describes the influence of interest rate adjustments by the Federal Reserve?

A)They always lead to lower rates of marginal taxes.
B)They can lead to higher unemployment in years of budget deficits.
C)They can spur economic growth by increasing the cost of money for business.
D)They can spur economic growth by increasing the available money supply.
E)They increase corporate profits by making money more available.

Question 59

Which of the following is an example of monetary policy?

A)decreasing federal spending
B)increasing food and drug regulations
C)increasing taxes on wealthy Americans
D)lowering interest rates
E)lowering state property and sales tax

Question 60

Which of the following is a possible solution to the long-term problem of solvency in the Social Security program?

A)Eliminate the prescription drug program for seniors.
B)Increase the states' financial contribution.
C)Increase the minimum retirement age.
D)Lower the minimum retirement age.
E)Lower the payroll tax contribution.

Question 61

Education policy is primarily under the control of the federal government.

Question 62

President Lyndon Johnson avoided addressing problems of poverty,racial discrimination,environmental degradation,and urban decay.

Question 63

Education is generally a matter of __________ levels of government.

Question 64

Congress has the primary responsibility for setting interest rates in the United States.

Question 65

A welfare program that contains an eligibility threshold is likely a means-tested program.

Question 66

The Affordable Care Act requires that Americans have health insurance.

Question 67

The public/national debt is the yearly difference between government revenues and the deficit.

Question 68

The Affordable Care Act,colloquially known as Obamacare,involved a federal takeover of the insurance industry.

Question 69

Social Security is a means-tested program because it provides benefits to all qualifying individuals.

Question 70

Temporary Assistance for Needy Families provides funds for families in need of financial assistance.Therefore,it is considered a means-tested program.

Question 71

Despite disagreement from politicians on how to improve the economy,economists almost universally agree on how to fix it.

Question 72

Temporary Assistance to Needy Families replaced the federal program ___________.

Question 73

The best way to influence the money supply is through fiscal policy.

Question 74

Monetary economic policy uses the money supply to affect growth in the U.S.economy.

Question 75

___________ is an anti-poverty program for the elderly that all qualifying individuals receive at a certain age.

Question 76

Medicare is designed to help the __________ population.

Question 77

The federal government has become involved in education in part because of foreign threats.

Question 78

The ___________ passed in 2009 to deal with the economic collapse was designed to stimulate the economy.

Question 79

The welfare system in the United States is more developed compared to European nations because Europeans are more focused on individual responsibility than Americans.

Question 80

Social Security is considered an entitlement program.