Lien Bui's Quiz History_ Chapter 15 Test.pdf - Chapter 15...

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Unformatted text preview: Chapter 15 Test Results for Lien Bui Correct answers are hidden. Score for this quiz: 250 out of 250 Submitted Jun 1 at 11:23am This attempt took 59 minutes. Question 1 5 / 5 pts A fiscal policy solution to inflation would be to increase government spending. lower tariffs and other barriers to trade. increase the tax rate. raise the discount rate. decrease the tax rate. correct Question 2 5 / 5 pts A major point of debate surrounding the Federal Reserve's role in economic policy is the Fed's political accountability. whether the president should be able to veto the Fed's decisions. the issue of competence. whether Congress should be able to reject the Fed's decisions. None of these answers is correct. correct Question 3 5 / 5 pts A ruling by the Food and Drug Administration that a drug is dangerous to use and therefore cannot be marketed is an example of regulation for the purpose of supply­side safety. demand­side safety. equity. efficiency. profit. correct Question 4 5 / 5 pts About what percentage of the annual federal budget is accounted for by the interest paid on the national debt? 50% 5% 25% 15% 2% correct Question 5 5 / 5 pts Advocates of deregulation are primarily concerned with efficiency. equity. externalities. public safety. political expediency. correct Question 6 5 / 5 pts Democrats in Washington have usually responded to high levels of unemployment with reduced government spending. increased government spending. increased government taxes. decreased government taxes. decreased government regulation. correct Question 7 Earth Day was the brainchild of Senator Ted Kennedy. Robert Byrd. Mike Mansfield. Ted Stevens. Gaylord Nelson. correct 5 / 5 pts Question 8 5 / 5 pts Economic efficiency requires that the free market not be regulated by government. that the output of goods and services is the highest possible given the amount of input used to produce them. the economy to be organized around large firms. economic transactions to be fair to each party. economic transactions to be equal to each party. correct Question 9 5 / 5 pts Farm subsidies have traditionally had strong support in Congress, particularly from representatives whose districts are rural. rural­state senators and representatives. senators whose states are rural. the Speaker of the House and Senate president pro tempore. Democratic senators and representatives. correct Question 10 5 / 5 pts Fiscal policy is a mechanism the government employs to influence the economy. Fiscal policy is based on the idea that a balanced budget is the key to a healthy economy. the money supply. the government's taxing and spending decisions. the importance of maintaining a 12­month (fiscal year) economic cycle. the projections of the Federal Reserve Board. correct Question 11 Government benefits for business include all of the following EXCEPT low­interest loans and government­guaranteed loans. corporate tax breaks. a national transportation system. minimum­wage laws. 5 / 5 pts a national education system. correct Question 12 5 / 5 pts Government support for agriculture in the form of price supports and income subsidies is designed primarily to increase farm production in order to meet the nation's food needs. stabilize farm income, which would otherwise fluctuate greatly due to market and weather conditions. promote farm conservation so as to preserve the productive capacity of U.S. agriculture. encourage rural development. encourage urban development. correct Question 13 5 / 5 pts If the economic problem is low productivity and high unemployment, the fiscal policy action on the demand side would be to increase taxes. cut business taxes. increase spending. decrease spending. None of these answers is correct. correct Question 14 5 / 5 pts In John Maynard Keynes's demand­side economic theory, an economic recession can be shortened through government spending programs. the natural workings of the free­market system. a lowering of tariffs in the global economy. a determination on the part of government not to spend any more than it receives in taxes. tax cuts for the wealthy. correct Question 15 5 / 5 pts In The Wealth of Nations (1776), Adam Smith made all of the following arguments for laissez­faire capitalism, EXCEPT which of the following? The desire for profit is the invisible hand that guides a capitalist system. The government should not be allowed any role whatsoever in the economy. Private firms should be left alone to make their production and distribution decisions. Firms will try to use as few resources as possible in order to keep their prices low. Certain areas of the economy were better run by government agencies. correct Question 16 5 / 5 pts Judged in the context of the full range of public policies, the government in the United States has been equally hostile to the interests of business and labor. equally supportive of the interests of business and labor. substantially more supportive of business than labor. substantially more supportive of labor than business. substantially more supportive of left­wing radicals than conservatives. correct Question 17 5 / 5 pts Keynesian economics emphasizes ________ as a means of curtailing economic downturns. reduced taxes increased government spending decreased regulation decreased inflation increased taxes correct Question 18 5 / 5 pts Members of the Federal Reserve Board serve for variable terms and are exposed to high levels of political pressure. have no power to refuse congressional requests for information. are appointed by the president and can be removed by the Senate. are appointed by Congress and can be removed by Congress. are appointed by the president and are not subject to removal. correct Question 19 5 / 5 pts Monetary policy differs from fiscal policy in that it has to be exercised by the legislature. the policy goals are very different. it is a slower process than fiscal policy. it can be implemented more quickly than fiscal policy. None of these answers is correct. correct Question 20 Monetary policy includes all the following assumptions EXCEPT that 5 / 5 pts the money supply is the key to sustaining a healthy economy. too little money in circulation contributes to inflation. too little money in circulation contributes to a slowdown in consumer buying. too little money in circulation contributes to a slowdown in production. too much money in circulation contributes to inflation. correct Question 21 5 / 5 pts Over the past forty years, the burden of federal taxation has shifted from big business to small business. shifted from individuals to corporations. shifted from corporations to individuals. evened out between individuals and corporations. None of these answers is correct. correct Question 22 5 / 5 pts Regarding the Kyoto agreement and greenhouse gas emissions, which of the following is true? The United States is the largest single producer of greenhouse emissions in the world, on a per­capita basis. President George W. Bush rejected the agreement. It was a multinational effort to reduce carbon emissions. The burden of addressing the global warming problem will fall unevenly on nations. All these answers are correct. correct Question 23 5 / 5 pts Regulatory activity relating to the environment has actually meant that the environment today is no better than it was during the 1960s. actually worse than it was during the 1960s. vastly more clean than it was during the 1960s. so free from pollution that further regulatory activity in the future seems pointless. None of these answers is correct. correct Question 24 5 / 5 pts Supply­side economics is based primarily on stimulation of the business (supply) component. government stimulation of consumer demands. a repudiation of trickle­down theory. increases in taxation. increases in government regulation. correct Question 25 5 / 5 pts Supply­side economics, as implemented by President George W. Bush's administration, involved the supply component of the supply­demand equation. stressing the importance of tax cuts for businesses. stressing the importance of tax cuts for the wealthy. an increase in the size of the national debt. All these answers are correct. correct Question 26 5 / 5 pts The Federal Reserve System was created in 1933. is run by a congressional committee. regulates only national banks. was created specifically to conduct fiscal policy. None of these answers is correct. correct Question 27 5 / 5 pts The Federal Reserve controls the money supply through all of the following actions EXCEPT raising the cash reserve that member banks are required to deposit with the Federal Reserve. raising the interest rate that member banks are charged when they borrow from the Federal Reserve. lowering the cash reserve that member banks are required to deposit with the Federal Reserve. lowering the interest rate that member banks are charged when they borrow from the Federal Reserve. lowering the tax rate on individuals. correct Question 28 5 / 5 pts The Federal Reserve plays a large part in establishing ________ policy. monetary military fiscal budgetary security correct Question 29 5 / 5 pts The Progressive Era of government regulation focused on strengthening consumer protection by preventing credit agencies from gouging individuals with high levels of debt. bolstering worker safety by increasing the power of unions and forcing better safety practices on businesses. increasing environmental protection and strengthening the EPA. regulating troubled economic sectors, such as banking. stopping the unfair business practices of the new monopolies, such as the railroads. correct Question 30 The Superfund program is designed to 5 / 5 pts bail out financial institutions that are considered too large to collapse. provide domestic farmers with subsidies in order to remain competitive with international farming. provide funds for cleaning up badly contaminated and polluted sites. provide the president with emergency funds to deal with major natural disasters. None of these answers is correct. correct Question 31 The Tennessee Valley Authority is an electricity industry owned by the United States. a private industry regulated by the United States. a private electricity industry exempt from government regulation. a private environmental organization that receives federal funding. a private environmental organization with power to regulate industry. correct 5 / 5 pts Question 32 5 / 5 pts The ________ established minimum wages and constraints on the use of child labor. Securities and Exchange Act of 1934 Banking Act of 1934 Airlines Deregulation Act of 1977 Fair Labor Standards Act of 1938 Homestead Act of 1862 correct Question 33 5 / 5 pts The creation of the Food and Drug Administration and the passage of the Securities and Exchange Act were intended to promote equity in the economy. eliminate the problem of externalities in the economy. destroy the legal foundation of the business trust. promote efficiency in the economy. None of these answers is correct. correct Question 34 5 / 5 pts The era of "new social regulation", which addressed issues such as the environment and worker safety, differed from the previous two eras of regulatory reform in that the Republican Party took the lead in placing additional regulations on business. the aim was to regulate activities of firms of many types, not just those in a particular industry. the regulatory agencies were established in a way that prevented the president from having a role in their operations. the guiding principle was self­regulation—business was given wide leeway in deciding how it would comply with the new requirement. the guiding principle was overregulation—business would be allowed almost no leeway in deciding how it would comply with new regulations. correct Question 35 5 / 5 pts The federal government has assumed a permanent, strong role in the economy, contributing to its stability and efficiency, since the 1930s. the 1860s. the 1960s. the 1980s. None of these is correct; federal spending has reached high levels only sporadically. correct Question 36 The first national park was created at ________ in 1872. Acadia Yellowstone Yosemite Mammoth Cave the Grand Canyon 5 / 5 pts correct Question 37 5 / 5 pts The highest rate of inflation (13 percent) since World War II occurred in ________. 1955 1963 1979 1991 2002 correct Question 38 5 / 5 pts The tax cuts pushed by President George W. Bush while in office were premised largely on demand­side economics. supply­side economics. fiscal policy. monetary policy. Keynesian economics. correct Question 39 5 / 5 pts The term externalities refers to regulations imposed on a firm by government. a nation that is a trading partner of another nation. unpaid costs of production that are incurred by society. tariffs imposed on American goods exported to other countries. None of these answers is correct. correct Question 40 What did Congress do in 1995 to reduce overregulation? It cut funding for regulatory agencies like the EPA and Securities and Exchange Commission. 5 / 5 pts It passed the Airlines Deregulation Act, which eliminated government­set airfares and the requirement that airlines provide service to smaller­sized cities. It restricted the president's ability to directly request administrative regulations from agency heads. It cut the budget of the Food and Drug Administration. It enacted legislation that prohibits administrators in some instances from issuing a regulation unless they can show that its benefits outweigh its costs. correct Question 41 5 / 5 pts What has been the preferred strategy of U.S. lawmakers for combating the problem of global warming? reducing regulation on businesses to allow more private­sector solutions to develop creatively raising interest rates to slow down the economy business­tradable carbon tax credits reduction of carbon emissions alternative energy sources and energy conservation correct Question 42 5 / 5 pts What was a major change brought about by the National Labor Relations Act of 1935? It established the national minimum wage. It broke up business monopolies in order to give workers more choice in employer. Workers were given the right to bargain collectively. It eliminated the ability of companies to bargain directly with unions. It reduced the ability of workers to go on strike indefinitely. correct Question 43 When the Fed was created in 1913, it had no role in the management of the nation's economy. it was restricted to providing emergency loans to financial institutions. 5 / 5 pts it adhered to a strictly supply­side policy focus. its primary economic management tool was to reduce inflation by restricting the money supply. it was far more likely to increase the money supply by lowering interest rates than to restrict it by raising them. correct Question 44 5 / 5 pts Which is true regarding the nation's environmental policy? The first major steps by the national government to clean up the environment began in the early 1900s. A majority of the public is sympathetic to environmentalism. The modern environmental movement gained impetus with the publication of Armageddon in 1949. In the 1960s, the government began a policy of land conservation through the creation of national parks. A majority of the public is not sympathetic to environmentalism. correct Question 45 5 / 5 pts Which of the following government agencies regulates business competition? Federal Trade Commission Interstate Commerce Commission Antitrust Division of the Justice Department all of these: the Federal Trade Commission; the Interstate Commerce Commission; and the Antitrust Division of the Justice Department None of these answers is correct. correct Question 46 5 / 5 pts Which of the following is correct about environmental policy? The national parks are subject to a dual use policy of preservation, recreation, and exploitation of the rich natural resources. The Environmental Protection Agency was elevated to cabinet status in 1998 by President Clinton and the Republican Congress. Environmental regulation has done little to improve air and water quality. Policymakers always give more consideration to environmental protection than to economic development when the two conflict. None of these answers is correct. correct Question 47 5 / 5 pts Which of the following statements best describes the relationship today between government and the economy in the United States? The economy is largely self­regulating. The government subsidizes economic interests but otherwise leaves them to operate as they please. The government is the driving force in the U.S. economy; business has a secondary role. The government has an important role in regulating and maintaining the U.S. economy. The government owns most of the means of production in the United States. correct Question 48 5 / 5 pts Which of the following statements is true? The national debt was eliminated in 1998. The chair of the Fed creates the president's budget on an annual basis. Keynes advocated government spending to counteract an economic downturn. The highest budget deficit in U.S. history was $59 billion. The Congressional Budget Office creates the president's budget on an annual basis. correct Question 49 5 / 5 pts Which president's use of government policy as economic stimulus ushered in the modern era of U.S. government fiscal policy? Thomas Jefferson Franklin Roosevelt Lyndon Johnson Woodrow Wilson William Clinton correct Question 50 5 / 5 pts ________ wrote The Silent Spring in 1962. Al Gore George W. Bush Greenpeace Rachel Carson The Sierra Club correct Quiz Score: 250 out of 250 ...
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