Deck 13: Domestic Policy

Question 1

If the Federal Reserve wants to help boost a sagging economy,which one of the following is the most direct way it can do this?

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
E) lower tariffs so that corporations can trade more freely with foreign countries.

Answer 1

B

Question 2

Which of the following is NOT a benefit to government provided by contracting?

A) Government can acquire services or products at a cheaper rate than if government were to produce them itself.
B) Government can use its contracting power to encourage desirable behavior among those businesses that have contracts with the government.
C) Government can use contracting to encourage industries, universities, and other organizations to engage in valuable research.
D) Government can use contracting to help build up certain segments of the economy.
E) Government officials almost always use contracting to award businesses and corporations that donated substantial amounts of money to their political campaigns.

Answer 2

E

Question 3

What year marked the beginning of the Great Depression?

A) 1918
B) 1921
C) 1929
D) 1933
E) 1941

Answer 3

C

Question 4

Which of the following was not important 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
E) state governments

Question 5

Which of the following statements about the Federal Reserve Board (FRB)is FALSE?

A) The FRB is part of the Department of the Treasury.
B) The FRB is the main organization for setting monetary policy.
C) The members of the FRB are selected by the president and confirmed by the Senate.
D) The president cannot remove at will the members of the FRB.
E) The FRB sets the federal funds rate.

Question 6

Those who believe in ______ argue that the government's role in regulating the economy should be limited to regulating the supply of money.

A) Keynesianism
B) monetarism
C) fiscalism I
D) inflation
E) laissez-faire capitalism

Question 7

______ are government grants of cash or other valuable commodities,such as land,used to promote activities desired by the government.

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

Question 8

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

A) They can be treated as "benefits" that can be spread widely 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.
E) They are paid for through international tariffs rather than personal income taxes.

Question 9

When the price level of goods and services increases over several months,it is called:

A) monetarism
B) a deficit
C) open-market operations
D) inflation
E) recession

Question 10

When did the American welfare state begin?

A) the 1890s
B) the 1920s
C) the 1930s
D) the 1960s
E) the 1980s

Question 11

If a new tax on luxury goods such as sports cars,boats,and helicopters were passed in order to reduce the disparities between the highest and lowest income brackets,we would refer to this as:

A) an entitlement program
B) a tariff
C) a regressive tax policy
D) a policy of redistribution
E) a loophole

Question 12

Which of the following is NOT a way in which the government promotes business development?

A) subsidies
B) tax breaks
C) loans
D) regulations
E) grants

Question 13

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

A) fiscal policy
B) monetary policy
C) the contracting power
D) discretionary spending policy
E) budgetary policy

Question 14

The idea of ______ was at the heart of George W.Bush's 2005 plan for Social Security reform.

A) termination
B) private accounts
C) universal access
D) benefit reduction
E) benefit increase

Question 15

______ were the centerpiece of George W.Bush's economic policy.

A) Protective tariffs
B) Tax cuts
C) Antiglobalization measures
D) Agriculture subsidies
E) Categorical grants

Question 16

When the government's goals are embodied in a law or an order,backed by punishments or rewards,it is best described as:

A) public policy
B) regulation
C) administrative rule making
D) legislation
E) implementation

Question 17

Public policy can be embodied in all of the following forms except:

A) a law
B) an administrative rule
C) an order
D) regulation
E) a petition

Question 18

How did the Federal Reserve respond to the terrorist attacks of September 11,2001?

A) It cut interest rates to promote increased investment and spending.
B) To relieve fear, it required that Wall Street be open for business throughout the emergency.
C) The Federal Reserve demanded, and received, a seat on the National Security Council.
D) It raised interest rates and discouraged spending in order to conserve money in the event of war.
E) It did not do anything; that was the problem.

Question 19

The goals of American social policy are:

A) popular and receive wide support
B) often controversial
C) determined not by popular opinion but by the Constitution
D) often changed drastically from administration to administration
E) similar to those seen in the social programs of other countries

Question 20

Why did the Democrats believe that the 2001 tax cuts should only remain permanent for those making less than $250,000 a year?

A) High-income earners (those making more than $250,000 a year) had benefited disproportionately from economic growth in the early 2000s.
B) The original tax cuts for those making more than $250,000 a year were overwhelmingly unpopular with the American public.
C) Most Democratic members of Congress make less than $250,000 a year.
D) Tax cuts for the wealthy stimulate the economy.
E) The original 2001 tax cut legislation stipulated that after ten years the tax cuts for those making over $250,000 a year would be repealed.

Question 21

Which of the following is a program of forced savings?

A) Medicaid
B) Medicare
C) Temporary Assistance to Needy Families
D) Food stamps
E) Aid to Families with Dependent Children

Question 22

The goals of social policy:

A) reflect changing views about which risks should be borne by the individual, or shared by society
B) have been consistent since the early twentieth century
C) are determined by the political party that controls the White House
D) are clearly laid out in the Constitution
E) are consistent across the different states of the United States

Question 23

Which of the following is NOT a goal of American social policy?

A) the alleviation of poverty
B) the promotion of equality of opportunity
C) closing the gap between rich and poor
D) protecting people against disability and illness
E) protecting people against temporary unemployment

Question 24

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 revealed that local governments were too corrupt to be trusted with welfare policies.
E) It showed that government was not as capable in taking care of the poor as private charities.

Question 25

What event marked the major historical turning point in the relationship between the government and the marketplace?

A) the Civil War
B) the Depression of 1896
C) the Great Depression
D) World War II
E) the implementation of Reaganomics

Question 26

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

A) Medicaid
B) Medicare
C) food stamps
D) Supplemental Security Income
E) Social Security

Question 27

When was Medicare established?

A) 1888
B) 1933
C) 1942
D) 1965
E) 1994

Question 28

When was Social Security established?

A) 1897
B) 1929
C) 1930
D) 1935
E) 1965

Question 29

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 do not have any citizens who need the benefits provided by noncontributory programs
E) some states choose to only employ contributory programs

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
E) inflation

Question 31

Which of the following statements about noncontributory programs,such as TANF and Medicaid,is most accurate?

A) The federal government provides all of the funding for these programs and, as a result, citizens in each state receive exactly the same level of benefits.
B) The federal government does not provide any funding for these programs, but state governments have all agreed to provide exactly the same level of benefits to citizens across the country.
C) The federal government provides only some of the funding for these programs and, as a result, citizens in each state receive exactly the same level of benefits.
D) The federal government provides only some of the funding for these programs and, as a result, citizens receive very different levels of benefits in different states.
E) The federal government does not provide any funding for these programs and, as a result, citizens receive very different levels of benefits in different states.

Question 32

A cost-of-living adjustment is based on what?

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

Question 33

Which of the following is the best description of the changing expectations of government's role in the economy since the 1930s?

A) People hold the government responsible for a healthy economy.
B) People demand that the government provide health insurance.
C) People expect that the government will engage in deficit spending for the public welfare.
D) People expect the government to print more money in times of inflation.
E) People expect the government to stay completely out of the economy.

Question 34

Which of the following statements about noncontributory programs is FALSE?

A) Eligibility for these programs is determined through means testing.
B) These programs may provide public housing, food stamps, and school lunches.
C) The existence of these programs dates from the Civil War.
D) These programs underwent drastic reform in the 1990s.
E) These programs are relatively unpopular when compared to contributory programs.

Question 35

Which of the following statements about Social Security is FALSE?

A) Social Security was established in 1935.
B) It is a program based on forced savings.
C) Contributors receive benefits in strict proportion to their contribution.
D) Social Security redistributes wealth from younger workers to older retirees.
E) It is a fairly popular program among U.S. citizens.

Question 36

Social Security is a good example of:

A) outdoor relief
B) indoor relief
C) a contributory program
D) a noncontributory program
E) a means-tested program

Question 37

What was the primary problem with private charities before the development of the welfare state?

A) They would make subjective decisions on who was deserving or undeserving of aid.
B) They were unable to get the necessary government licenses to operate legally.
C) They disrupted the constitutional separation of church and state.
D) They often kept donations for their own private use.
E) There were too many of them.

Question 38

What important noncontributory program was abolished by Congress in 1996?

A) food stamps
B) Medicaid
C) Aid to Families with Dependent Children
D) Temporary Assistance to Needy Families
E) Social Security

Question 39

Medicare is a ______ program; Medicaid is a ______ program.

A) noncontributory; contributory
B) contributory; noncontributory
C) contributory; contributory
D) noncontributory; noncontributory
E) existing; now defunct

Question 40

The Temporary Assistance to Needy Families program is administered:

A) by the federal government
B) by the states, with uniform benefit levels set by the federal government
C) by the states, with benefit levels varying between states
D) through private agencies with governmental contracts
E) by the federal government, with benefit levels varying between states

Question 41

Which of the following is an in-kind benefit?

A) Social Security
B) cost of living adjustments
C) Medicaid
D) Veterans benefits payments
E) Supplemental Security Income

Question 42

What do public opinion polls reveal about welfare policies?

A) They receive widespread support as long as they are means tested.
B) Americans view welfare beneficiaries as "undeserving."
C) Their popularity is low but has been steadily climbing since the 1970s.
D) The public support for welfare politics goes up when they are administered by the states.
E) Conservatives tend to favor them, while liberals oppose them.

Question 43

The welfare reforms of 1996 did all of the following except:

A) place time limitations on how long a recipient could receive benefits
B) grant block grants to the states to fund the programs
C) restrict most legal immigrants from receiving benefits
D) take the federal government out of welfare policy, granting all authority to the states
E) gave the states much more discretion in designing their cash-assistance programs to needy families

Question 44

What is the most significant force determining the distribution of opportunities in the United States?

A) education
B) level of wealth
C) race
D) physical beauty
E) social class

Question 45

Part of the reason welfare programs became so unpopular was that:

A) many Americans came to believe welfare recipients did not want to work
B) the benefits provided by the program were too small to actually help recipients improve their lives
C) the programs were completely taken over by the federal government rather than having input from state and local governments
D) the programs were completely taken over by state and local governments rather than having input from the federal government
E) federal judges frequently ruled them to be unconstitutional

Question 46

Which of the following programs most benefits the working poor?

A) earned income tax credits
B) Medicaid
C) Temporary Assistance for Needy Families
D) subsidized student loans
E) Social Security

Question 47

Which of the following is NOT a problem with the current health care system in the United States?

A) An increasing number of workers cannot afford health insurance coverage.
B) Many small employers cannot afford to offer health care benefits to their employees.
C) Medicaid is under increasing fiscal strain due to rising health care costs.
D) Medicare is under increasing fiscal strain due to rising health care costs.
E) Local governments are forced to pay the health care costs of all unemployed Americans.

Question 48

Which of the following is NOT a reason why the No Child Left Behind Act has been controversial?

A) Many states branded it an unfunded mandate.
B) Teachers argued that "teaching to the test" undermined critical thinking skills.
C) The standards were too lenient and almost every school met them easily.
D) It vastly increased the role of the federal government in the public school system.
E) The states were made responsible for setting standards and devising appropriate tests.

Question 49

The number of families receiving welfare:

A) has decreased every year since 1996
B) has increased every year since 1996
C) has not changed significantly since the 1960s
D) decreased dramatically between 1993 and 2004 but increased significantly between 2004 and 2008
E) increased dramatically between 1993 and 2004 but decreased significantly between 2004 and 2008

Question 50

What event brought federal attention to elementary school education?

A) the fear that the Soviets were winning the Cold War through better technology
B) low levels of literacy in America's inner cities
C) the return of veterans at the end of World War II
D) the Great Depression
E) the fear that the Japanese were outperforming American students in math and science

Question 51

The main change in welfare policies since 1996 is:

A) increased use of non-cash assistance
B) increased benefits
C) decreased use of means testing
D) the decreased use of job training programs
E) increased use of direct cash assistance

Question 52

The idea that all people should have the freedom to use whatever talents and wealth they have to achieve their goals is called:

A) in-kind benefits
B) equality of opportunity
C) outdoor relief
D) contributory system
E) equality of results

Question 53

Which of the following statements about the No Child Left Behind Act is FALSE?

A) It was the signature education act of George W. Bush.
B) It increased the role of the federal government in education policy.
C) It requires that students be tested every year for proficiency in math and reading.
D) It creates a standard national test for all students.
E) Many states considered it an unfunded mandate.

Question 54

The GI Bill of Rights of 1944 and the National Defense Education Act were examples of:

A) the federal government's attempt to recruit more soldiers to the armed forces prior to World War II
B) the federal government's attempt to improve national security during the Cold War
C) the federal government's approach to education policy during the 1940s and 1950s
D) the numerous amendments made to the Constitution in order to protect the rights of veterans of foreign wars
E) the kinds of proposals made by Ronald Reagan when he ran for president in 1980

Question 55

When potential recipients of a benefit must establish their genuine need,the government program is called:

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

Question 56

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

A) The reforms have done little to get people off of 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 a reduction in overall poverty.
D) The reforms have led to an increase in the number of welfare recipients.
E) The reforms did not change anything.

Question 57

When was the U.S.Public Health Service founded?

A) 1798
B) 1866
C) 1936
D) 1942
E) 1968

Question 58

Charter schools are best described as:

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

Question 59

Which of the following was NOT one of the goals of the American Recovery and Reinvestment Act of 2009?

A) encourage economic growth
B) developing weatherization projects and clean technology construction
C) saving existing jobs that might be lost due to the economic recession
D) providing for a national health care system
E) making longer-term investments to encourage job creation

Question 60

Which of the following was a key part of President Obama's overhaul of No Child Left Behind?

A) a proposal that states could apply for waivers that would exempt them from some of the requirements of No Child Left Behind
B) a proposal to change the criteria for allocating $14 billion in federal assistance to schools from a system of competitive grants to a per-pupil formula
C) mandating a single nationwide standardized test to be taken by all students
D) providing an unprecedented amount of federal funding for school vouchers, allowing parents more freedom in choosing where their children attend school
E) setting national standards for textbooks at all levels of schooling below college

Question 61

Which of the following is the strongest factor in predicting which groups in society receive the most benefits from government's social policies?

A) groups that make up the largest percentage of the population
B) groups that are the most politically powerful
C) groups that have the largest membership
D) groups that are made up of people who cannot help themselves like children or the elderly
E) groups that provide the most to government through their tax dollars

Question 62

The "individual mandate" 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 pre-existing conditions
E) a system of health care where the government owns and operates all medical facilities

Question 63

Since the welfare reforms of 1996,what is the primary reason for receiving federal cash assistance if one is nonworking and able-bodied?

A) The recipient is caring for children.
B) The recipient is going to school or in a job-training program.
C) The recipient has been means tested.
D) The recipient has been considered deserving.
E) The recipient is actively looking for a job.

Question 64

What is the shadow welfare state?

A) the welfare that is distributed by local governments and special districts
B) social benefits that are distributed by private employers who are being subsidized by the government
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
E) the welfare distributed by private charities and religious organizations

Question 65

Which of the following was NOT included in the congressional plans for health care reform?

A) the creation of new state-based insurance exchanges
B) a provision requiring uninsured individuals to purchase health insurance
C) insurance regulation that prohibits insurers from denying benefits for a variety of reasons, such as preexisting conditions
D) an expansion of the public programs Medicaid and the State Children's Health Insurance Program (SCHIP)
E) a "public option" allowing individuals to acquire medical coverage directly from the government

Question 66

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
E) an incredible drop in the stock market

Question 67

Which of the following statements about Americans' health care views is most accurate?

A) Americans universally reject the idea that government should ensure that all people receive adequate health care.
B) Although a majority of Americans reject the idea that government should ensure that all people receive adequate health care, there is widespread agreement that government should adopt the "public option" system.
C) Although a majority of Americans believe that government should ensure that all people receive adequate health care, there is considerable disagreement about how to deliver such benefits and how to pay for them.
D) A majority of Americans believe that government should ensure that all people receive adequate health care and there is widespread agreement that government should take over all of the responsibilities currently given to health insurance companies.
E) A vast majority of Americans strongly favor government-run health care, but only if state and local governments are placed in charge of administering all health care programs.

Question 68

______ 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
E) Supplemental Security Income

Question 69

Which of the following is NOT a reason the working poor receive such a small amount of social policy benefits?

A) They are often too poor to enjoy the subsidies of the shadow welfare state.
B) Because they are employed, they cannot receive assistance through Temporary Assistance for Needy Families.
C) The working poor are not a well-organized political force.
D) The working poor are often considered undeserving by public opinion.
E) They are often renters and do not benefit from government programs that help homeowners.

Question 70

Which of the following statements about government spending is most accurate?

A) The government spends far more on programs for education than on programs for the elderly and poor children.
B) The government spends far more on programs for veterans than on programs for the elderly and poor children.
C) The government spends far more on programs for the elderly than on programs for veterans and on unemployment insurance benefits.
D) The government spends far more on programs for poor children than on programs for the elderly and on unemployment insurance benefits.
E) The government spends far more on unemployment insurance benefits than on programs for the elderly and for poor children.

Question 71

Since the mid-1990s,by how much has the number of welfare recipients declined in the United States?

A) between 5 and 10 percent
B) between 20 and 30 percent
C) over 50 percent
D) The number of welfare recipients has actually risen 5 percent since the mid-1990s
E) over 80 percent

Question 72

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

A) the middle class
B) children
C) the elderly
D) the wealthy
E) minorities

Question 73

Which of the following least explains why the elderly receive a large share of social benefits?

A) The elderly make up a large proportion of the population.
B) The elderly are perceived as deserving benefits.
C) The elderly have developed strong interest groups and lobbying techniques.
D) Most members of Congress are themselves elderly or soon will be.
E) The elderly tend to vote more than younger people.

Question 74

Between 1959 and 2004,the percentage of elderly Americans living in poverty has gone from ______ to ______.

A) 50 percent; 35 percent
B) 35 percent; 10 percent
C) 65 percent; 25 percent
D) 30 percent; 45 percent
E) 40 percent; 30 percent

Question 75

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

A) Social Security
B) food stamps
C) public housing assistance
D) Temporary Assistance to Needy Families
E) Medicare

Question 76

AARP has a membership of approximately ______ members.

A) 10,000
B) 750,000
C) 1 million
D) 9 million
E) 40 million

Question 77

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

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

Question 78

How did 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.
E) It increased property taxes to the point that many homeowners were forced to sell their homes.

Question 79

Spending on medical programs such as Medicare and Medicaid has proven difficult to control because:

A) spending on Social Security has declined so significantly
B) state and local governments have refused to contribute to the costs of administering these programs
C) these programs are indexed to grow at two times the rate of inflation
D) of the growing number of people eligible and because of rising health care costs
E) recipients of these programs frequently abuse them

Question 80

The central thrust of federal housing policy has been to:

A) promote homeownership
B) reduce homelessness
C) provide low-cost rental units for the poor
D) provide uniform housing safety standards
E) provide equitable housing for minorities