Question 1

Whenever you deposit money into a checking or savings account at a traditional retail bank or other financial institution that advertises the fact that it is a Federal Deposit Insurance Corporation (FDIC) member-and most banks are, in order to remain competitive- you can be certain that:

Accepted Answer

The FDIC insures deposits up to $250,000 per depositor, per insured bank, for each account ownership category, protecting against bank failure.

Question 2

By delivering social benefits through the tax code (such as with the Earned Income Tax Credit or individual coverage subsidies in the case of the Affordable Care Act), delegating authority to the state governments (such as with Temporary Assistance for Needy Families), and relying on government contractors or the private sector to provide government benefits, policymakers:

Accepted Answer

Delegating authority and relying on various entities to deliver social benefits often leads to increased complexity and fragmentation, making programs harder to manage and evaluate.

Question 3

The federal government became involved in subsidizing the education of college and university students as a result of the 1944 GI Bill, which ____________.

Accepted Answer

The 1944 GI Bill provided veterans returning from World War II with college and university tuition vouchers, significantly expanding access to higher education for veterans.

Question 4

A prerequisite for a market economy is a government that maintains competition across the various sectors of the economy.

Accepted Answer

In a market economy, competition is crucial for ensuring efficiency and maximizing consumer welfare. However, without government regulation and enforcement of competition laws, monopolies or oligopolies can emerge and stifle competition, leading to inefficiencies and reduced consumer welfare. Therefore, a government that maintains competition is a prerequisite for a market economy.

Question 5

Despite developing an increasing number of social programs over time, since the advent of Social Security in 1935, the United States still has a much less robust welfare state than many other developed democracies.This means, comparatively, that it has ____________.

Accepted Answer

The United States has not developed as extensive a set of social programs or benefits compared to many other developed democracies, resulting in a less robust welfare state.

Question 6

Popularly known as "Obamacare," this law, __________, was created and designed to ensure that tens of millions of Americans who could not afford health insurance would have access to at least basic coverage.It also expanded Medicaid.

Accepted Answer

The Affordable Care Act (ACA), commonly known as "Obamacare," was enacted to provide affordable health insurance to more Americans and expand the Medicaid program.

Question 7

The federal government has the power to break up a monopoly.

Accepted Answer

The federal government has the power to break up a monopoly under the Sherman Antitrust Act.

Question 8

In the United States, the government adjusts the welfare system in cycles to be sure that the support given is uncomfortable enough that people will prefer working to retiring on the low income that they will get from welfare.

Accepted Answer

The passage states that the government adjusts the welfare system to be sure that the support given is uncomfortable enough that people will prefer working to retiring on the low income that they will get from welfare.

Question 9

The government tries to promote economic stability by regulating competition.

Accepted Answer

One of the ways the government promotes economic stability is by regulating competition to prevent monopolies, promote fair pricing, and encourage innovation in industries.

Question 10

An effective market economy requires governmental rules for the enforcement of contracts.

Accepted Answer

An effective market economy relies on the enforcement of contracts to ensure that parties adhere to agreements, which requires a legal framework provided by the government.

Question 11

A consistent increase in the government's intervention in the economy is called inflation.

Accepted Answer

Inflation refers to a general increase in the price level of goods and services in an economy over time, and is caused by factors such as an increase in the money supply or a decrease in the supply of goods and services. Government intervention can potentially impact inflation, but it is not the same thing as inflation itself.

Question 12

Before the 1930s, neither the federal nor state governments sought to promote full employment.

Accepted Answer

It wasn't until the 1930s, during the Great Depression, that the federal government began to prioritize full employment as a goal and implement policies to achieve it. State governments also began to adopt similar policies in response to the economic crisis.

Question 13

Government makes a market economy possible.

Accepted Answer

The government creates the legal and economic framework necessary for a market economy to function efficiently and fairly. This includes enforcing property rights, regulating markets to prevent fraud and abuse, providing a stable currency, and investing in public goods and infrastructure. Without government intervention and oversight, market economies are prone to market failures and unequal distribution of resources.

Question 14

Each year the federal government spends more money than it takes in from revenue, as it has since the late 1990s.The difference is added to the _________________, or the total amount of money owed by the U.S.government, which sat at $20 trillion in late 2017.

Accepted Answer

The national debt is the total amount of money owed by the U.S. government, which increases when the government spends more than its revenue.

Question 15

The federal role in American elementary and secondary education was substantially boosted during the George W.Bush administration with his ____________________ program, which created stronger national testing and school accountability mandates.In 2015, after years of controversy over testing and funding, it was replaced with a more state-friendly program.

Accepted Answer

The No Child Left Behind (NCLB) program, implemented during the George W. Bush administration, significantly increased federal involvement in education by introducing national testing and accountability measures. It was later replaced by the Every Student Succeeds Act in 2015.

Question 16

The gross domestic product (GDP) is the market value of the goods and services produced in the economy.

Accepted Answer

The answer of The gross domestic product (GDP) is the...

Question 17

Pell Grants, which help pay for the higher education tuition costs of low-to-moderate-income families, cover about 30 percent of the cost of a typical university education today, compared to about 80 percent in the 1970s.What is behind the decrease?

Accepted Answer

The size of the federal grants has not kept up with rising tuition prices, leading to a decrease in the percentage of costs covered by Pell Grants.

Question 18

Because nearly all social policies are redistributive-that is, they take money from one group and give it to another-they are hard to pass.If a proposed social policy that would provide benefits to a large group of people is adopted:

Accepted Answer

Once a social policy is adopted and provides benefits to a large group, it generally remains in place due to the difficulty of repealing policies that have widespread support, even if opponents continue to criticize it.

Question 19

For many decades following the presidency of Andrew Jackson, the United States had no central bank and thus no means of implementing national monetary policy due largely to opposition from:

Accepted Answer

The answer of For many decades following the presidency of...

Question 20

When the economy began a downturn in 2007, one that rapidly worsened when the global financial system came to the brink of collapse in 2008, the Federal Reserve significantly lowered the ______________ in order to boost the economy, eventually lowering it to nearly rock bottom before pushing it upwards again in 2018.

Accepted Answer

The answer of When the economy began a downturn in...

Quiz 13: Introduction to Public Policy