Over the past two decades, economic inequality in America has significantly increased 3. When the government’s goals are embodied in a law or an order, backed by punishments or rewards, it is best described as public policy. 4 Public policy can be embodied in all of the following forms except 1. All of the above are forms of public policy. 2. 3. 4. an order. a law. an administrative rule 5. Which of the following statements about the relationship between government and capitalism is false? 2.
Before the Progressive Era, the marketplace was untouched by government interference.
6. What year was the beginning of the Great Depression? 3. 1929 7. Which of the following is the best description of the changing expectations of government’s role in the economy since the 1930s? 2. People hold the government responsible for a healthy economy. 8. The rise of Napster in the 1990s and other music exchange services demonstrates 1. that new technologies have made it more difficult for the government to protect property. 9. The phrase caveat emptor means 2.
let the buyer beware. 10.
Why do many businesses prefer Congress to regulate the economy? 1. One national regulation is better than the inconsistencies and disparities of different state laws. 11. Throughout much of the twentieth century, AT&T existed as a(n) 2. publicly regulated monopoly. 12. Which of the following companies has recently been sued by the federal government for monopoly practices? 2. Microsoft 13. Something that must be supplied by the government because it cannot be provided by the marketplace is called a 2. public good. 14. Which of the following is the best example of a public good? . the interstate highway system 15. Who first elaborated the theory of a laissez-faire economy? 4. Adam Smith 16. Adam Smith’s theory of _____ argues that many individual economic transactions come together to create a greater good for all. 2. the invisible hand 17. Classic laissez-faire theory argues all of the following except that 1. a truly efficient government allows private enterprise to provide all government services. 18. Which of the following is the most important economic value for supporters of laissez-faire? 4. efficiency 19.
The idea that government intervention will fail because people will expect and compensate for such actions is called the 2. rational expectations theory. 20. The idea that the government can stimulate a slow economy by increasing public spending or cutting taxes is called 1. Keynesianism. 21. Which of the following is the key argument of John Maynard Keynes? 3. When businesses lay off workers, those workers spend less money, forcing more layoffs. 22. When did Keynesian economic ideas become government practice in the United States? 4. 1930s 23. Which U. S. president once said, “I am now a Keynesian”? . Richard Nixon 24. What economic development, according to many critics, has made Keynesian economics less useful? 1. the rise of international trade 25. Those who believe in _____ argue that the government’s role in regulating the economy should be limited to regulating the supply of money. 2. monetarism 26. Which of the following best describes the views of the economist Milton Friedman? 4. Government involvement in the economy is a restriction of individual liberty. 27. Which of the following has not been a major goal of the government’s involvement in the economy? 3. romoting economic equity and fairness for all citizens 28. What event marked the major historical turning point in the relationship between the government and the marketplace? 4. the Great Depression 29. The index of the total output of goods and services produced in a national economy is called the 1. gross domestic product. 30. Which of the following was a driving force for the economic growth during the late nineteenth century? 3. manufacturing industries 31. How did the Federal Reserve respond to the terrorist attacks of 9/11? 2. It cut interest rates to promote increased investment and spending. 2. What is the most important way in which the government affects personal and corporate investments? 3. promoting investor confidence through policies enforcing stability and regard for the law 33. The Securities and Exchange Commission was established 2. after the Stock Market Crash of 1929. 34. Which of the following is not a function of the Securities and Exchange Commission? 4. It protects the confidentiality of all sales of stocks and bonds. 35. Which of the following is not one of the three basic prerequisites economic for growth? 1. well-compensated corporate leaders 36.
What did the Great Depression and World War II do to the public’s expectations regarding employment? 3. They showed that the government could help to ensure full employment. 37. The economic upswing of 200304 is best described as a/an 2. jobless recovery. 38. When the price level of goods and services increases over several months, it is called 4. inflation. 39. All of the following are strategies to combat inflation except 2. increasing the amount of government spending on public works projects. 40. Which of the following was not a major form of economic promotion by the federal government in the nineteenth century? . public works projects 41. Which of the following is a way in which the government promotes business development? 1. 2. tax breaks all of the above 3. subsidies 4. loans 42. _____ are given to states and local governments on the condition that all expenditures are limited to the problem or group specified by law. 1. Categorical grants 43. Which of the following does the Small Business Administration (SBA) not provide? 4. legal council 44. Promoting and advertising American goods and services in foreign nations is one of the major tasks of the 3. Commerce Department. 5. What does it mean for a nation to be granted most favored nation status? 4. It means that the United States offers that nation the lowest tariff rate offered to any nation. 46. The goal of NAFTA is to 1. reduce and eliminate tariffs between the United States, Canada, and Mexico. 47. What organization, founded in 1995, is designed to promote international free trade? 2. World Trade Organization 48. One of the most contentious issues involving the World Trade Organization recently is 2. agricultural subsidies given out by the United States and European nations. 49.
Before the 1930s, relations between labor and management in the United States were 3. among the most violent in the world. 50. Which of the following actions marked a decisive break with the tradition of the federal government promoting compromises between labor and management? 1. In 1981, Ronald Reagan fired striking air traffic controllers and hired permanent replacements to fill their jobs. 51. Most of the groundbreaking environmental laws were written in the 3. 1970s. 52. Upton Sinclair’s 1906 expose, The Jungle, revealed 2. the unsanitary practices at meatpacking plants. 3. During the 1960s, Ralph Nader was influential as 2. a consumer advocate. 54. Arguments over whether or not to drill for oil in Alaska’s Arctic National Wildlife Refuge include all of the following concerns except 4. the current economic needs of American oil companies 55. Which of the following Founders was most responsible for the establishment of the Bank of the United States? 3. Alexander Hamilton 56. Open-market operations describes 2. the method by which the Federal Reserve buys and sells government securities to increase or decrease the supply of oney in the economy. 57. What is the reserve requirement? 4. the rule that every bank must have a certain amount of cash and negotiable securities on hand at all times 58. Which of the following statements about the Federal Reserve Board (FRB) is false? 4. The FRB is part of the Department of the Treasury. 59. The power to raise or lower the tax rate is part of 1. fiscal policy. 60. A tax on imported goods is called a 1. tariff. 61. Before World War II, what was the federal government’s most important source of revenue? 1. excise taxes 62.
When people in the lower income brackets pay a larger percentage of their income toward a tax, it is called _____ taxation. 2. regressive 63. Sales taxes are _____, and most income taxes are _____. 4. regressive; progressive 64. A(n) _____ is an incentive in the tax code to individuals and corporations to invest their money in ways the government desires in exchange for a reduction in tax liabilities. 1. loophole 65. The _____ is determined by the amount government spending exceeds government revenue in a fiscal year. 2. budget deficit 66.
In order to have reliable information about the costs and impact of economic policies, Congress created the _____. 4. Congressional Budget Office 67. Which of the following is not an example of mandatory spending? 2. defense spending 68. Approximately what percentage of the federal budget is made up of uncontrollables? 4. 60 percent 69. _____ policies are designed to eliminate the abuses of powerful _____. 2. Antitrust; monopolies 70. The most consistently powerful nongovernment actors in determining economic policy are 2. business organizations.
Cite this Chap 16 Govt 2302
Chap 16 Govt 2302. (2016, Nov 23). Retrieved from https://graduateway.com/chap-16-govt-2302/