Question 1

By April 2014,the total national debt was about __________ trillion dollars.

Accepted Answer

According to recent data from the U.S. Treasury, as of April 2014, the total national debt was approximately 17.5 trillion dollars. Option D is closest to this figure.

Question 2

At the time of Reagan's Economic Recovery Tax Act of 1981,the top marginal rate for the highest income group of Americans was

Accepted Answer

At the time of Reagan's Economic Recovery Tax Act of 1981, the top marginal rate for the highest income group of Americans was 70 percent.

Question 3

The __________ supervises the development of the president's budget.

Accepted Answer

The Office of Management and Budget (OMB) supervises the development of the president's budget. The OMB assists the president in preparing the budget proposal, coordinating agency budget requests, and reviewing the budget's effectiveness.

Question 4

The House Armed Services Committee and the Senate Banking,Housing,and Urban Affairs Committee are __________ committees that review portions of the budget that pertain to their area of responsibility.

Accepted Answer

Authorization committees are responsible for reviewing and approving the policies and programs that are funded through the federal budget. The House Armed Services Committee and the Senate Banking, Housing, and Urban Affairs Committee specifically review portions of the budget related to their respective areas of responsibility. Appropriations committees, on the other hand, are responsible for allocating the actual funding for these policies and programs.

Question 5

The U.S.Fiscal Year 2015 budget submitted by President Obama reflected expended federal government spending of approximately _________ dollars.

Accepted Answer

The U.S. Fiscal Year 2015 budget submitted by President Obama reflected expended federal government spending of approximately 3,901 billion dollars, also known as 3.9 trillion dollars.

Question 6

Which of the following did not occur,after the passage of Reagan's Economic Recovery Tax Act of 1981?

Accepted Answer

Inflation did not grow from about 3 percent in 1981 to 13 percent in 1983. In fact, inflation had been a major concern in the years prior to the passage of the Economic Recovery Tax Act, and the act was intended in part to address inflation by spurring economic growth. However, as a result of a combination of factors including high oil prices, tight monetary policy, and a strong dollar, inflation did rise in the early 1980s, peaking at 13.5 percent in 1980 before gradually declining.

Question 7

The Budget and Accounting Act of 1921 placed the responsibility for preparing the federal budget in the hands of

Accepted Answer

The Budget and Accounting Act of 1921 granted the responsibility for preparing the federal budget to the president of the United States. The act required the president to submit a comprehensive budget proposal to Congress each year, outlining the government's estimated revenue and proposed expenditures for the upcoming fiscal year. Thus, the correct option is E - the president.

Question 8

President Reagan backed a sweeping tax reform that reduced the number of brackets.By eliminating many tax brackets,the new tax policy approached the idea of a __________-one that requires everyone to pay at the same rate.

Accepted Answer

The phrase "approached the idea of a flat one that requires everyone to pay at the same rate" indicates that the tax reform implemented a flat tax or a single-rate tax system. Therefore, the best choice is D, flat tax.

Question 9

The Department of Education successfully lobbies to have  added to the budget a new federally-funded program that would ​provide for technology in classrooms.Spending on this program would be best described as _____________ spending.

Accepted Answer

Discretionary spending refers to the government's ability to allocate budget for certain programs or initiatives based on their discretion. In this case, the Department of Education successfully lobbied for a new program to be funded, indicating that the allocation of budget for this program is discretionary.

Question 10

The essence of supply-side economics is that

Accepted Answer

Supply-side economics advocates for tax cuts to stimulate investment and economic growth. The belief is that if taxes are lowered, individuals and corporations will have more money to invest in businesses and job creation, leading to increased production and economic growth. Additionally, proponents argue that decreased government regulation of business will allow for more competition and innovation.

Question 11

Which of the following taxes is not a major source (as in over 10 percent)of the federal government's revenue?

Accepted Answer

Estate taxes are not a major source of federal government revenue, as they only account for around 0.5% of the total revenue. The other choices, including individual income taxes, social income taxes, and corporate income taxes, are all major sources of revenue for the government, making up a significant percentage of the total revenue each year.

Question 12

Of the twelve appropriations bills that are supposed to be passed​ to fund operations of the U.S.government,_______ were passed by the appropriations committees in 2013

Accepted Answer

In 2013, only one of the twelve appropriations bills was passed by the appropriations committees.

Question 13

Social Security and veterans' pensions,which provide benefits to which individuals have a legal right and which cannot be reduced without changing the law,are also referred to as

Accepted Answer

Social Security and veterans' pensions are entitlements because they provide benefits to individuals who meet certain eligibility criteria, and the government is legally obligated to provide these benefits according to the law. Entitlements are different from discretionary spending, which is subject to annual appropriations and can be reduced or eliminated at the discretion of Congress. Controllable spending refers to spending for which Congress can exercise direct control, such as defense spending or funding for domestic programs. Retroactive programs and earmarks refer to specific types of spending or legislative provisions, but they are not relevant to the question of whether Social Security and veterans' pensions are entitlements.

Question 14

The role of appropriations committees is to

Accepted Answer

The role of appropriations committees is to decide which programs will be funded by allocating specific amounts of money to each program or agency. They do not monitor overall spending or oversee implementation of specific acts. Although they do work within a budget, they do not offer a comprehensive budget review process or authorize spending in particular legislative areas.

Question 15

Non-entitlement spending ​that is authorized by annual appropriations is referred to as _____________ spending.

Accepted Answer

Non-entitlement spending that is authorized by annual appropriations is referred to as discretionary spending. This type of spending is not mandatory and can be adjusted by Congress each year.

Question 16

In the 1980s,Congress tried to force itself to balance the budget by

Accepted Answer

In the 1980s, Congress attempted to force itself to balance the budget by setting annual targets to gradually lower the deficit through a process known as Gramm-Rudman-Hollings Act. This act required that the annual deficit be reduced to zero by fiscal year 1991. If the target was not met, automatic spending cuts were triggered. Although the act was eventually struck down by the Supreme Court, it demonstrated Congress's attempt to address the issue of deficit reduction. Therefore, the best choice is D - setting annual targets to gradually lower the deficit.

Question 17

In contrast to its normal practice,in 2014 the Fed seemed more concerned about ___________ than about ______________.​

Accepted Answer

The statement says that in 2014, the Fed seemed more concerned about persistent unemployment than about inflation. Option A is the only choice that matches this. B, C, D, and E are not consistent with the statement.

Question 18

In 2011,under pressure from the tea party movement,congressional Republicans opposed

Accepted Answer

Congressional Republicans opposed raising the federal debt ceiling in 2011 under pressure from the tea party movement.

Question 19

The text suggests that no one in Congress is responsible for the budget as a whole because

Accepted Answer

The text states that different groups in each house of Congress plan for revenues and spending, thus suggesting that no one group or individual is responsible for the budget as a whole.

Question 20

The idea of tax cuts for the rich that will then "trickle down" to working people in the form of additional jobs and income,is consistent with

Accepted Answer

The idea of tax cuts for the rich that will then "trickle down" to working people in the form of additional jobs and income is consistent with supply-side economics. Supply-side economics, also known as "trickle-down economics," holds that by cutting taxes on the wealthy and corporations, businesses will have more money to invest and create jobs, leading to greater economic growth and prosperity for all. Critics of this approach argue that it primarily benefits the rich and exacerbates income inequality.

Quiz 17: Economic Policy

By April 2014,the total national debt was about __________ trillion dollars.

At the time of Reagan's Economic Recovery Tax Act of 1981,the top marginal rate for the highest income group of Americans was

The __________ supervises the development of the president's budget.

The House Armed Services Committee and the Senate Banking,Housing,and Urban Affairs Committee are __________ committees that review portions of the budget that pertain to their area of responsibility.

The U.S.Fiscal Year 2015 budget submitted by President Obama reflected expended federal government spending of approximately _________ dollars.

Which of the following did not occur,after the passage of Reagan's Economic Recovery Tax Act of 1981?

The Budget and Accounting Act of 1921 placed the responsibility for preparing the federal budget in the hands of

President Reagan backed a sweeping tax reform that reduced the number of brackets.By eliminating many tax brackets,the new tax policy approached the idea of a __________-one that requires everyone to pay at the same rate.

The Department of Education successfully lobbies to have added to the budget a new federally-funded program that would provide for technology in classrooms.Spending on this program would be best described as _____________ spending.

The essence of supply-side economics is that

Which of the following taxes is not a major source (as in over 10 percent) of the federal government's revenue?

Of the twelve appropriations bills that are supposed to be passed to fund operations of the U.S.government,_______ were passed by the appropriations committees in 2013

Social Security and veterans' pensions,which provide benefits to which individuals have a legal right and which cannot be reduced without changing the law,are also referred to as

The role of appropriations committees is to

Non-entitlement spending that is authorized by annual appropriations is referred to as _____________ spending.

In the 1980s,Congress tried to force itself to balance the budget by

In contrast to its normal practice,in 2014 the Fed seemed more concerned about _ than about ____.

In 2011,under pressure from the tea party movement,congressional Republicans opposed

The text suggests that no one in Congress is responsible for the budget as a whole because

The idea of tax cuts for the rich that will then "trickle down" to working people in the form of additional jobs and income,is consistent with

Quiz 17: Economic Policy

By April 2014,the total national debt was about __________ trillion dollars.

At the time of Reagan's Economic Recovery Tax Act of 1981,the top marginal rate for the highest income group of Americans was

The __________ supervises the development of the president's budget.

The House Armed Services Committee and the Senate Banking,Housing,and Urban Affairs Committee are __________ committees that review portions of the budget that pertain to their area of responsibility.

The U.S.Fiscal Year 2015 budget submitted by President Obama reflected expended federal government spending of approximately _________ dollars.

Which of the following did not occur,after the passage of Reagan's Economic Recovery Tax Act of 1981?

The Budget and Accounting Act of 1921 placed the responsibility for preparing the federal budget in the hands of

President Reagan backed a sweeping tax reform that reduced the number of brackets.By eliminating many tax brackets,the new tax policy approached the idea of a __________-one that requires everyone to pay at the same rate.

The Department of Education successfully lobbies to have added to the budget a new federally-funded program that would ​provide for technology in classrooms.Spending on this program would be best described as _____________ spending.

The essence of supply-side economics is that

Which of the following taxes is not a major source (as in over 10 percent) of the federal government's revenue?

Of the twelve appropriations bills that are supposed to be passed​ to fund operations of the U.S.government,_______ were passed by the appropriations committees in 2013

Social Security and veterans' pensions,which provide benefits to which individuals have a legal right and which cannot be reduced without changing the law,are also referred to as

The role of appropriations committees is to

Non-entitlement spending ​that is authorized by annual appropriations is referred to as _____________ spending.

In the 1980s,Congress tried to force itself to balance the budget by

In contrast to its normal practice,in 2014 the Fed seemed more concerned about ___________ than about ______________.​

In 2011,under pressure from the tea party movement,congressional Republicans opposed

The text suggests that no one in Congress is responsible for the budget as a whole because

The idea of tax cuts for the rich that will then "trickle down" to working people in the form of additional jobs and income,is consistent with

The Department of Education successfully lobbies to have added to the budget a new federally-funded program that would provide for technology in classrooms.Spending on this program would be best described as _____________ spending.

Of the twelve appropriations bills that are supposed to be passed to fund operations of the U.S.government,_______ were passed by the appropriations committees in 2013

Non-entitlement spending that is authorized by annual appropriations is referred to as _____________ spending.

In contrast to its normal practice,in 2014 the Fed seemed more concerned about _ than about ____.