Question 1

________ was NOT a social program created during the New Deal.

Accepted Answer

Medicare was not created during the New Deal. It was actually part of Lyndon B. Johnson's Great Society programs in the 1960s. The other three options listed were all social programs created during the New Deal by Franklin D. Roosevelt.

Question 2

Which one of the following was a component of President George W.Bush's plan to scale back social programs?

Accepted Answer

President George W. Bush proposed to privatize portions of Social Security, allowing individuals to invest a portion of their payroll taxes in personal retirement accounts instead of relying solely on Social Security benefits. This was a component of his plan to scale back social programs.

Question 3

The Sherman Antitrust Act led to the dissolution of the ________ monopoly?

Accepted Answer

The Sherman Antitrust Act led to the dissolution of the Standard Oil monopoly, which was a major player in the oil industry. This act was aimed at curbing concentrations of power that interfere with trade and reduce economic competition.

Question 4

What can be concluded from reading this passage?

Accepted Answer

The passage suggests that free market environmentalism could be a way to reconcile the conflicting interests of ranchers and environmentalists in the western United States. There is no information to suggest that the controversy has been fully resolved, that ranchers typically ally with environmental groups, or that federal officials plan to return land to the states for sale.

Question 5

Government assistance, usually in the form of financial assistance, to individuals in need is called

Accepted Answer

Welfare is a form of government assistance that provides financial aid to individuals in need, typically in the form of cash assistance, food stamps, or housing subsidies. This assistance is typically offered to individuals who are elderly, disabled, or low-income, as well as to families with children who are in need of help to meet their basic needs.

Question 6

How did the chair of the Fed, Ben Bernanke, respond to the economic crisis in 2008?

Accepted Answer

Ben Bernanke responded to the economic crisis in 2008 by implementing a policy of quantitative easing, which involved "flooding the street with money" by purchasing large amounts of government bonds and other securities to increase the money supply and stimulate economic growth. This was a significant departure from traditional monetary policy and was aimed at preventing a total collapse of the financial system.

Question 7

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

Accepted Answer

Medicare was signed into law by President Lyndon Johnson in 1965 as part of his Great Society plan.

Question 8

The logic behind lowering interest rates is to

Accepted Answer

Lowering interest rates encourages people to borrow money, as it becomes cheaper to do so. This, in turn, increases the amount of money being borrowed and can stimulate economic growth.

Question 9

The specific interest rate that banks pay to the Federal Reserve Bank for short-term loans is called

Accepted Answer

The specific interest rate that banks pay to the Federal Reserve Bank for short-term loans is called a discount rate.

Question 10

Funding for the Great Society was quickly threatened by

Accepted Answer

The Vietnam War was a drain on the nation's budget, and funding for the Great Society programs was quickly threatened due to the high costs of fighting in Vietnam. This led to debates and disputes over where federal funds should be allocated, with some arguing that social welfare programs were being neglected in favor of military spending.

Question 11

The specific interest rate that banks pay each other for emergency overnight loans is called

Accepted Answer

The specific interest rate that banks pay each other for emergency overnight loans is called the federal funds rate.

Question 12

Which one of the following statements is accurate?

Accepted Answer

The answer of  Which one of the following statements...

Question 13

The reserve requirement requires

Accepted Answer

The reserve requirement requires banks to have a certain amount of money on hand to back up their assets. This means that banks cannot loan out all of the money they receive in deposits, but must keep a portion in reserve to ensure they have enough funds to cover withdrawals and other obligations. The reserve requirement is set by the Federal Reserve and is intended to maintain stability in the banking system. It is not related to insuring deposits, holding precious metals, or reserving currency for emergencies.

Question 14

A natural monopoly occurs because

Accepted Answer

A natural monopoly occurs due to the high costs associated with entering a specific industry or market, which makes it unprofitable for other companies to enter and compete. The existing company can continue to operate and maintain their dominant position without fear of losing their market share to competition.

Question 15

If the Fed governors wanted to put downward pressure on the FFR, it would likely

Accepted Answer

Purchasing government bonds from banks would increase the money supply in the economy, lowering the FFR as banks have more funds to lend out. Selling government bonds to banks would decrease the money supply, putting upward pressure on the FFR. Increasing the reserve requirement and discount rate would also have the opposite effect by reducing the available funds for banks to lend, putting upward pressure on the FFR.

Question 16

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

Accepted Answer

The first social welfare program enacted by the federal government was financial assistance to Union Army veterans of the Civil War in 1862 with the passage of the Pension Act. This provided financial support to disabled veterans and widows.

Question 17

A ________ tax takes a larger share of poor people's income than the income of wealthy people.

Accepted Answer

A regressive tax takes a larger percentage of income from low-income earners than high-income earners. This is because the tax rate decreases as income increases. Therefore, the tax burden falls disproportionately on those with lower incomes. On the other hand, a progressive tax system takes a larger percentage of income from high-income earners than from low-income earners.

Question 18

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

Accepted Answer

The New Deal was a series of programs and policies introduced by President Franklin Roosevelt to address the economic crisis of the Great Depression. It included initiatives such as the creation of the Social Security system, the Civilian Conservation Corps, and the Works Progress Administration.

Question 19

The Great Society was a social plan developed by President

Accepted Answer

The Great Society was a set of domestic policies and programs aimed at eliminating poverty and racial injustice in the United States. It was developed by President Lyndon B. Johnson in the 1960s, as part of his broader vision for a "Great Society" that would enable all Americans to achieve their full potential. Johnson's initiatives included the creation of Medicare and Medicaid, the passage of the Civil Rights Act and the Voting Rights Act, and the launch of programs like Head Start and Upward Bound to support education and social mobility.

Question 20

Because of severe economic conditions, the federal government began enacting policies to ensure the well-being of the American public starting in the

Accepted Answer

Severe economic conditions, such as the Great Depression, led to the enactment of policies for the well-being of the American public, including the New Deal programs, in the 1930s.

Quiz 14: Economic and Social Policy