Deck 14: Economic and Social Policy

Question 1

The American Association of Retired Persons (AARP)is a government agency that administers the Medicaid program.

Answer 1

False

Question 2

The agency that works with the president to compose the nation's annual budget,which is housed in the executive branch,used to be known as the Bureau of the Budget.What is its current name?

A) Federal Reserve Bank
B) National Budget Office
C) Federal Council on Budget Affairs
D) Office of Management and Budget
E) Internal Revenue Service

Answer 2

D

Question 3

Which of the following agencies is housed in the executive branch and advises the president on economic policy making?

A) Federal Reserve Board
B) National Economic Council
C) Federal National Mortgage Association
D) American International Group
E) Chamber of Commerce

Answer 3

B

Question 4

The Constitution gives the executive branch the "power of the purse."

Question 5

All social welfare programs are based on need.

Question 6

The health care reform passed in 2010 can be considered part of the government's effort to provide a social safety net.

Question 7

Which of the following describes the top policy priorities among a political party,politicians,or a coalition of politicians?

A) social policy efforts
B) a legislative leviathan
C) a policy agenda
D) a key issue agenda
E) partisanship

Question 8

Increasing a nation's budget deficit is considered acceptable under the theory of Keynesian economics.

Question 9

The type of budgetary spending that is required by law is called mandatory spending.

Question 10

The Great Society was the term used to describe a group of social policy programs developed by President Franklin Roosevelt to combat the Great Depression.

Question 11

According to the text,Hurricane Katrina led to:

A) the realization that the federal emergency response was adequate
B) higher taxes on the people who live in the Gulf Coast region to pay for the cleanup
C) the need to create a new cabinet-level department to deal with natural disasters
D) the creation of the Federal Emergency Management Agency
E) a reexamination of readiness for national emergencies and the social safety net

Question 12

Which of the following congressional committees yields the most power on economic policies?

A) foreign relations
B) commerce
C) administration
D) natural resources
E) education and labor

Question 13

A regressive tax involves wealthier individuals paying higher taxes and poorer individuals paying lower taxes.

Question 14

None of the social policies passed under the New Deal remain today.

Question 15

Decisions made by the Federal Reserve System are:

A) politically influenced by the president
B) politically influenced by Congress
C) politically influenced by the National Economic Council
D) politically influenced by various agencies within the federal bureaucracy
E) not politically influenced because the agency is independent

Question 16

Entitlements are government-sponsored programs,such as Medicare and Medicaid,that provide benefits to qualifying individuals.

Question 17

The Office of Management and Budget (OMB)solicits spending requests from all federal agencies,suggests spending cuts,and helps to prioritize the president's budget.

Question 18

Members of the baby-boom generation-a term used to describe individuals born between 1946 and 1964-will put a great deal of stress on the Social Security system when they retire.

Question 19

Which of the following is a responsibility of the Treasury Department?

A) to ensure that tax returns have been filed and completed accurately
B) to supervise union certification elections
C) to make changes to the U.S. tax code
D) to collect taxes, duties, and money due to the United States
E) to make recommendations to the Justice Department about prosecuting individuals who may have knowingly violated federal tax laws

Question 20

The Treasury Department and the Federal Reserve Board often work against each other because they share responsibilities but operate as two separate agencies.

Question 21

The economic system in the United States is:

A) capitalist
B) socialist
C) fascist
D) democratic
E) laissez-faire

Question 22

Which of the following describes a situation in which government spending exceeds its revenue?

A) budget deficit
B) budget surplus
C) revenue recognition
D) disallowance
E) fiscal federalism

Question 23

The theory that lowering taxes will stimulate the economy because of increased investment and spending among the public is called:

A) Keynesian economics
B) discretionary spending
C) a stimulus package
D) supply-side economics
E) central economic planning

Question 24

The U.S.economic system is regulated by the ________,which seeks to maintain safe and transparent capital markets.

A) Securities and Exchange Commission
B) Federal Reserve Board
C) National Economic Council
D) National Banking Association
E) Treasury Department

Question 25

What type of budget spending allows for expenditures to be cut or eliminated?

A) nondiscretionary spending
B) Social Security benefits
C) Keynesian spending
D) discretionary spending
E) Medicare benefits

Question 26

The Federal Reserve Board has ________ members,who are appointed by the president.

A) three
B) five
C) seven
D) nine
E) fifteen

Question 27

No Child Left Behind is an example of education policy:

A) becoming more controlled by state and local governments
B) becoming more controlled by the federal government
C) increasingly being funded by the federal government
D) passed during the Great Society
E) increasingly being funded by state and local governments

Question 28

The specific interest rate that banks pay each other for emergency overnight loans is called a(n):

A) emergency loan rate
B) overnight loan rate
C) discount rate
D) federal funds rate
E) federal reserve rate

Question 29

The gross domestic product (GDP)is:

A) the annual difference between a country's imports and exports
B) a measure of a country's yearly budget surplus
C) a measure of a country's economic output and activity
D) a measure of a country's annual collection of taxes
E) a measure of the overall condition of the U.S. stock market

Question 30

When the economy goes into a deep,widespread,and prolonged downturn,it is called an:

A) economic disaster
B) economic stimulus package
C) economic deficit
D) economic depression
E) economic recession

Question 31

The specific interest rate that banks pay to the Federal Reserve Bank for short-term loans is called a(n):

A) short-term rate
B) emergency loan rate
C) discount rate
D) federal funds rate
E) federal reserve rate

Question 32

Every bank is required to hold a certain amount of money on hand.This is called the:

A) minimum reserve
B) minimum requirement
C) reserve requirement
D) emergency requirement
E) safety net requirement

Question 33

An increase in consumer goods prices over time is called:

A) increments
B) price gouging
C) inflation
D) price ceiling
E) progressive pricing

Question 34

Which of the following describes a situation in which government spending is equal to its revenue?

A) budget making
B) balanced budget
C) budget surplus
D) budget stability
E) fiscal federalism

Question 35

What type of tax is regressive (i.e.,burdens poorer individuals more so than wealthier individuals)?

A) property tax
B) sales tax
C) gift tax
D) income tax
E) estate taxes

Question 36

No Child Left Behind is a piece of legislation that:

A) increased federal funding for education
B) expanded Head Start to every school district
C) placed national accountability and testing requirements in every school district
D) required every school district to offer special education classes
E) decreased federal funding for education

Question 37

An economic situation in which there is too much money flowing and too few goods will most likely lead to:

A) tax cuts
B) a rise in taxes
C) inflation
D) an interest rate cut
E) stagnation

Question 38

The ________ is the total accumulation of money borrowed by the government.

A) budget deficit
B) federal debt
C) trade deficit
D) budget surplus
E) federal balance sheet

Question 39

The ________ is an interest group that represents the interests of senior citizens,the elderly,and other older individuals.

A) National Rifle Association (NRA)
B) American Association of Retired Persons (AARP)
C) National Association for the Advancement of Older People (NAAOP)
D) Senior Citizen Alliance (SCA)
E) National Organization for Women (NOW)

Question 40

Since the 1960s,which taxes have increased the most?

A) excise taxes
B) payroll taxes
C) corporate taxes
D) personal income taxes
E) luxury taxes

Question 41

In the post-World War II era,the disparity between poor people and wealthy people:

A) has gotten larger
B) has gotten smaller
C) has stayed about the same
D) is no longer measured due to privacy concerns
E) has only been measured since 1970

Question 42

The poverty line for a single person is currently defined as having an income of less than approximately ________ per year.

A) $20,000
B) $18,000
C) $15,000
D) $11,500
E) $9,000

Question 43

The ________ was the name given to a group of government-sponsored social and economic programs developed by Franklin Roosevelt to combat the Great Depression.

A) New Deal
B) Great Society
C) Contract with America
D) 1934 Stimulus Package
E) War on Poverty

Question 44

Medicare was one of the most significant social policies passed during whose presidency?

A) John F. Kennedy
B) Harry Truman
C) Franklin Roosevelt
D) Bill Clinton
E) Lyndon Johnson

Question 45

The courts' main contribution to the United States' economic stability is:

A) ensuring fair application of certain laws, such as patent, banking, finance, and corporate laws
B) their ability to strike down actions by the president or Congress as unconstitutional
C) their oversight of the Federal Reserve Board's actions
D) their ability to hear personal lawsuits against corporations, such as those in the tobacco industry
E) their ability to initiate and enforce consumer protection laws

Question 46

One of the first social welfare programs enacted by the federal government was financial assistance to veterans of:

A) the Spanish-American War
B) World War I
C) the War of 1812
D) the Civil War
E) World War II

Question 47

Which of the following is NOT a social program passed under the New Deal?

A) Medicare
B) Social Security
C) welfare for families with dependent children
D) labor rights to organize a union
E) agricultural subsidies

Question 48

A social policy vision such as George W.Bush's,in which citizens take responsibility for their own social well-being,is called:

A) the Second Great Society
B) the New Deal society
C) safety net society
D) ownership society
E) income inequality

Question 49

Up until the ________,the federal government took little responsibility for enacting policies to ensure the social well-being of the American public.

A) 1900s
B) 1930s
C) 1950s
D) 1960s
E) 1970s

Question 50

Corporate welfare is a term used to describe:

A) wealthier individuals who receive welfare
B) individuals who become wealthy from welfare
C) government assistance programs for job creation and growth
D) corporate tax cuts by state and local governments to attract business development
E) the creation of government jobs

Question 51

Which of the following is NOT a social policy usually associated with the social safety net?

A) worker training
B) health care
C) voting
D) housing
E) education

Question 52

Funding for the Great Society was quickly threatened by:

A) income tax cuts passed by Congress
B) World War II
C) the Vietnam War
D) underestimated costs of Medicare
E) the Korean War

Question 53

When Ronald Reagan became president,what did he seek to do to many of the Great Society programs?

A) expand upon them
B) cut or eliminate them
C) model his social policy programs after them
D) raise taxes on wealthier individuals to pay for them
E) raise taxes on poorer individuals to pay for them

Question 54

The New Deal policy guaranteeing the right to organize a union and set regulations for collective bargaining is known as:

A) Social Security
B) the Federal Emergency Relief Administration
C) the Public Works Administration
D) the National Recovery Administration
E) the National Labor Relations Act

Question 55

The Sherman Antitrust Act was passed in 1890 to break up which corporate monopoly?

A) oil
B) coal
C) steel
D) railroad
E) telegraph

Question 56

The Great Society was a social plan developed by President:

A) Franklin Roosevelt
B) Herbert Hoover
C) Bill Clinton
D) Lyndon Johnson
E) Harry Truman

Question 57

Regarding social policy,President George W.Bush:

A) did not support any new programs
B) eliminated most programs from the Great Society
C) labeled himself a "compassionate conservative"
D) greatly increased funding for social policies
E) became the first president to enact major changes to Social Security

Question 58

Which of the following terms describes a situation in which a single corporation lacks competition and controls the market for a certain product?

A) monopoly
B) hyperinflation
C) libertarianism
D) corpocracy
E) plutocracy

Question 59

The U.S.government has a history of breaking up monopolies,including those in the ________ and ________ industries.

A) alcohol; banking
B) computer; toy
C) airline; restaurant
D) railroad; oil
E) electric power; automobile

Question 60

Government assistance-usually financial assistance-to individuals in need is called:

A) block grants
B) welfare
C) social policy
D) Medicare
E) Social Security

Question 61

Temporary Assistance for Needy Families (TANF)was signed by which president?

A) Lyndon Johnson
B) Ronald Reagan
C) Bill Clinton
D) George W. Bush
E) Barack Obama

Question 62

What are the four major taxes collected by the federal government? Which of these taxes are regressive and which are progressive? In your answer define the idea of regressive and progressive taxes.What do you think of the federal government's tax policies? Are they fair or unfair? Are they too much or too little? Explain your answer.

Question 63

Temporary Assistance for Needy Families (TANF)put a ________-year lifetime limit on welfare benefits.

A) two
B) three
C) four
D) five
E) six

Question 64

What is the baby-boom generation? Are the members of this generation a concern for the future of Social Security and Medicare? If so,why?

Question 65

Welfare expenditures are administered by:

A) the Department of Health and Human Services
B) the Federal Emergency Management Agency
C) the Social Security Administration
D) state and local governments
E) the Department of Labor

Question 66

Social Security has been called the third rail of politics,which means:

A) it is a program spending more than it is taking in
B) it is a program taking in more than it is spending
C) politicians propose frequent changes to it in order to appease their constituents
D) politicians do not like to propose changes because they would likely be unpopular with their constituents
E) major changes have regularly been made to the policy

Question 67

What is the difference between mandatory spending and discretionary spending? What are some practical examples of each? Which type of spending has the greatest impact on Americans? Explain your answer.

Question 68

Congress reauthorized Temporary Assistance for Needy Families (TANF)in 2006,and added what requirement for states?

A) At least 50 percent of a state's TANF recipients had to work at least thirty hours a week.
B) States would need to pay 33 percent of the total costs for TANF.
C) States would need to give priority to single-parent homes.
D) At least 33 percent of a state's total TANF funds had to go to rural areas.
E) At least 25 percent of a state's total TANF recipients had to work at least thirty hours a week.

Question 69

Three major U.S.social policies are Social Security,Medicare,and Medicaid.Do policy experts believe that any of these programs is in financial danger? If so,which ones are in danger and why?

Question 70

The purpose of the Land Grant College Act was to:

A) build more colleges and universities during the nineteenth century
B) build more colleges after World War II
C) establish colleges that would promote education in areas such as business and finance
D) establish colleges that would promote education in areas such as agriculture and mechanical arts
E) supplement educational policies passed as part of the Great Society

Question 71

How do the legislative and executive branches contribute to the nation's budget? In your answer,discuss the key individuals and agencies involved.

Question 72

Which president proposed the Race to the Top program to provide competitive grants to schools,encouraging them to adopt better methods of teaching and assessment?

A) Lyndon Johnson
B) Ronald Reagan
C) Bill Clinton
D) George W. Bush
E) Barack Obama

Question 73

School vouchers are:

A) direct government aid to underperforming schools
B) direct government aid to families to assist with private school education costs
C) welfare payments to assist low-income individuals to pay for education materials
D) tax credits given to families with at least one child attending a public school
E) a reimbursement of taxes to people with no children

Question 74

Which of the following describes the group of Americans born between 1946 and 1964 who will be retiring in large numbers over the next twenty years?

A) the baby-boom generation
B) Generation X
C) Generation Y
D) the World War II generation
E) the Social Security generation

Question 75

The ________ helps poorer people move from welfare to a working income by providing tax credits to those who cannot afford to pay income taxes.

A) Income Tax Exception Act
B) Earned Income Tax Credit
C) Continual Economic Stimulus Package
D) Tax Relief for Low Income Families Act
E) Temporary Assistance for Needy Families

Question 76

Which of the following is NOT an example of a welfare,or income support,program?

A) food stamps
B) unemployment benefits
C) Medicare
D) earned income tax credit
E) Temporary Assistance for Needy Families

Question 77

The New Deal and the Great Society are two grand sets of social policies that occurred in American history.Explain in more detail what these plans were and the motivations behind them.Have they largely succeeded or failed in accomplishing their objectives?

Question 78

What is the difference between Keynesian economics and supply-side economics? How has each of these economic approaches been utilized by different administrations? Use specific examples from the text to support your answer.

Question 79

Since 1998,the country went from a budget surplus to the largest budget deficit in the history of the United States.What factors within Congress and the presidency led the budget from a surplus to a large deficit?

Question 80

Which social policy program is the successor to Aid to Families with Dependent Children (AFDC)?

A) Medicaid
B) Temporary Aid to Families with Dependent Children (TAFDC)
C) Temporary Assistance for Needy Families (TANF)
D) Food Stamp Act
E) No Child Left Behind