Practice+Exam3 - Practice Exam 3 (Note, this practice...

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Unformatted text preview: Practice Exam 3 (Note, this practice exam only contains questions from the 3rd section of the course; the first half of the final will be questions primarily from the first 2 sections.) 1) Distributive Policies are: a) Policies that redistribute wealth from the wealthy and give it to the poor b) Policies that allocate resources so that some segment of society can receive a service or benefit c) Policies that regulate the rules of trade d) Policies that govern foreign security 2) We might describe interested parties, players, and stakeholders in a policy area as: a) A non ­profit organization b) An issue network c) A congressional committee d) An executive agency 3) A person is discouraged by a government policy from taking an action being contemplated. Such a policy tool is known as a(n) a) incentive. b) disincentive. c) compromise. d) regulation. 4) Regulatory policies are: a) policies that delegate resources to one sector of society b) policies that redistribute resources from one sector of society to another c) policies that create a framework for how business & commerce is to occur d) policies that are development projects 5) Programs such as Medicare, Social Security, & Food stamps, generally count as: a) distributive policy b) redistributive policy c) regulatory policy d) pork 6) Which of the following would not be categorized as a market ­based policy tool: a) a “sin tax” on cigarettes and alcohol b) a per kilowatt hour subsidy on wind energy production c) a prohibition on marijuana consumption d) a gasoline tax 7) Which governmental institution is most important in the policy evaluation stage of the policy process model? a) Congress b) The President c) The GAO d) The Judiciary 8) The basic premise behind game theory is that: a) games are fun to play b) decision ­making is based on strategic self ­interested rational decisions c) individuals are generally concerned with societal benefit d) individuals are generally altruistic 9) Public choice theory tells us that because no voting system can accurate translate individual preferences to societal preferences: a) politics will always be gridlocked b) voting systems are generally fair c) government generally acts consistently d) the agenda setter is an extremely important position 10) If benefits are concentrated to one sector, and costs are diffuse across society, this is known as: a) Majoritarian politics b) Client politics c) Interest group politics d) Entrepreneurial politics 11) If benefits are concentrated to one sector, and costs are concentrated to one sector, this is known as: a) Majoritarian politics b) Client politics c) Interest group politics d) 12) a) b) c) Entrepreneurial politics An example of majoritarian politics is: The social security program (and changes to that program) below market ­rate leases to ranchers on public land in the West regulations regarding the amount of sulfur dioxide pollution a power plant can emit d) regulations concerning safety conditions in mines 13) a) b) c) An example of client politics is: The social security program (and changes to that program) below market ­rate leases to ranchers on public land in the West regulations regarding the amount of sulfur dioxide pollution a power plant can emit d) regulations concerning safety conditions in mines 14) Regulatory, or agency capture is most likely to occur in which type of politics? a) Majoritarian politics b) Client politics c) Interest group politics d) Entrepreneurial politics 15) When we say a market is efficient, what does this mean? a) that the market is free – free markets are always efficient b) that it is not possible to make anyone better off, without making anyone worse off c) that there is an equitable outcome for each person d) that there is equal opportunity for all people 16) Utilitarianism, as pictured by John Stuart Mill, John Harsanyi, and Jeremy Bentham generally advocates: a) severe redistribution of wealth b) maximizing societal welfare / utility c) guaranteeing a minimum standard of living to individuals d) using dictatorial preference to make decisions 17) Monetarism argues that recessions and depressions occur: a) b) c) d) when government increases the money supply when too much money chases too few goods when government attempts to cut the money supply to slow inflation when government slowly grows the money supply at a constant rate 18) a) b) c) d) The theory of punctuated equilibriums describes: That policy change is largely incremental, with periodic large shifts in policy That policy change is all incremental That policy is largely described by massive shifts in policy change None of the above 19) a) b) c) d) A Pareto improvement: Makes someone better off without making anyone worse off Makes the majority of people in society better off Makes the poorest people better off Achieves a less efficient outcome 20) a) b) c) d) Experimental economics has demonstrated: That Rawls is correct. That Utilitarianism is correct. That people may have fair ­minded preferences. That Government are great at identifying sources of inefficiency. 21) a) b) c) d) According to Rawls, if people are risk averse then: They value gains more heavily than losses They are highly concerned with the process in which allocations are made They are seeking to reduce transaction costs They would prefer equal distribution of wealth 22) a) b) c) d) Which of the following is NOT an assumption of the competitive model? There are no public goods, externalities, or transaction costs There is perfect and complete information There are a small numbers of producers and consumers There is equal access to technology and resources to firms 23) a) b) c) d) Which of the following is the primary source of federal government revenue? Excise taxes & fines Capital gains taxes Corporate income taxes Personal income taxes 24) What is a marginal tax rate, compared with an effective tax rate? a) a marginal rate is the tax rate assessed to individuals, the effective tax rate is assessed to corporations b) the marginal tax rate is rate applied at each bracket of income; the effective rate is the total amount paid as a percentage of income c) the marginal tax rate is the total rate that is paid; the effective rate includes deductions d) these two terms are synonyms 25) The theory of incremental budgeting argues that the deficit will increase over time because: a) mandatory programs drive over 60% of spending b) Wagner’s law describes that over time people demand increased services from government c) It is politically difficult to cut expenditures or raise taxes d) Agency heads routinely ask for an increase in budgets each year 26) a) b) c) d) The #1 driver of budget deficits in the future is: Increases in Social Security payments An increase in discretionary spending by Obama A projected rise in defense spending Increases Medicare payments 27) Which of the following describes implementation and growth of social welfare programs in the U.S., compared with other countries? a) the welfare state occurred more quickly in the U.S. than in other countries b) the welfare state has been slower to develop in the U.S. than in other countries c) the welfare state occurred simultaneously compared with other countries d) the U.S. has not enacted any social welfare programs 28) Which of the following are reasons for social security insolvency (in 2037  ­ 2041): I) an aging population II) overly generous benefits in the past III) longer life expectancy IV) mismanagement of social security funds V) tax cuts have reduced the revenue that social security takes in a) IV & V only b) II & III only c) I, II, & III d) All of the above 29) In the past, efforts to reform social security to make it more solvent have: a) increased taxes and decreased benefits b) increased taxes and kept benefits constant c) decreased taxes and kept benefits constant d) decreased benefits while keeping taxes constant 30) The legacy debt, of social security refers to: a) The amount of debt incurred by the program in the future b) The amount of debt incurred by the program in the past by overly generous benefits, that has not been made up for c) The cumulative debt of the elderly d) The federal deficit relating to social security 31) One might argue that education is a great example of federalism because: a) the federal government plays such a major role in all aspects of education b) funding for education is primarily at the federal level, while delivery is at the local level c) there are a variety of jurisdictions that fund, deliver, and set requirements regarding education d) education is a local good, funded by the state, and autonomous from federal control 32) Why does the federal government need to intervene in the student loan market, if it desires that a broad based student loan program? a) because the government wants to promote equity, and this can be done through education b) because lenders would not likely provide loans to students without collateral, and these loans also cost a lot to administer c) because the government desires improved civic participation d) because we need to boost national productivity 33) Early efforts (pre ­1900) to encourage education by the federal government focused on: a) setting standards b) providing funding c) allocating land d) setting up programs 34) Recent efforts, including No Child Left Behind, to encourage education by the federal government has used which policy tool: a) subsidies b) fines c) mandates d) taxes 35) School voucher programs are: a) programs that set up public schools that are free from district controls and have admissions by lottery b) programs that set up public schools within a school district, with specific topical interests (such as math, performing arts, science) c) programs that close under ­performing schools and bus students to other districts d) programs where students are given a credit (typically around $5k) to attend the school of their choice 36) Magnet school programs are: a) programs that set up public schools that are free from district controls and have admissions by lottery b) programs that set up public schools within a school district, with specific topical interests (such as math, performing arts, science) c) programs that close under ­performing schools and bus students to other districts d) programs where students are given a credit (typically around $5k) to attend the school of their choice 37) The essential idea behind cap & trade is: a) That overall emissions are capped, and each firm can’t exceed their initial allotted amount of emissions b) That firms are allocated emissions permits and then can trade permits they don’t use to other firms c) That firms are taxed a fee on their emissions directly d) Coal fired power ­plants ought to be banned 38) a) b) c) d) 39) Grandfathering permits means: Firms pay a set fee for the right to pollute Firms purchase emissions permits at auction Firms are given permits based on political connections Firms are given permits freely based on historical emissions Assumptions regarding the discount rate impact: a) The scientific certainty of climate change b) the value that we place on the future, in relation to the present, and thus the economics of climate change c) the political jurisdictions that address policy areas related to climate change d) all of the above 40) Which of the following is not a major source of carbon dioxide? a) burning fossil fuels b) manufacturing cement c) decaying vegetation d) burning forests 41) Climate change models suggest that if business as usual continues, this century, we should expect, on average: a) a slight decrease in sea levels b) no change in sea levels c) an increase of sea levels by 32 – 72 centimeters d) an increase of sea levels by up to 12 meters 42) The Regional Greenhouse Gas Initiative, Renewable Portfolio Standards, and Net Generation laws are examples of : a) international initiatives addressing climate change b) national initiatives addressing climate change c) state programs addressing climate change d) cap and trade programs 43) Arguments that suggest that we should not address climate change by using market based instruments addressing carbon emissions argue that instead we should: a) do nothing and hope everything works out OK b) pressure China to adopt emissions controls c) develop technology sharing and address the impacts of climate change, such as malaria d) develop a carbon tax 44) The Comprehensive Drug Abuse Prevention and Substance Control Act dramatically increased the power of the executive branch of the federal government, relating to drug control by: a) reducing the supply of drugs available through action in Latin America b) allowing the FDA to categorize and prohibit drugs without acts from Congress c) moving drug enforcement from the federal government to the states d) establishing a Drug Czar to oversee drug policy in the U.S. 45) International Drug policy, led by the U.S. in the 1960s – the early 1990s largely focused on: a) using domestic education programs to reduce the demand for drugs b) using treatment programs to reduce the harm that drug use causes c) using enforcement programs to reduce drug supply, particularly in Latin America d) economic development programs to shift farmers away from drug production, and toward the production of other cash crops 46) Lasting impacts of the War on Drugs has NOT included which of the following: a) a large increase in the jailed population and costs associated with keeping many prisoners for drug ­related crimes b) a sharp increase in the price of drugs on the street due to the success at reducing drug supply c) a decrease in the availability and consumption of drugs in the U.S. d) a sharp increase in the amount of violence related to drugs 47) Decriminalization generally means: a) allowing stores to sell drug products and the federal government to tax those products b) allowing small civil fines for possession of small quantities of drugs c) allowing fully legal dispensaries for medical purposes d) the promotion of treatment and safe use rather than enforcement 48) If estimates for the revenue for legalizing marijuana vary from $2 billion to $100 billion, what factors might most likely explain this variation? a) estimates vary because we don’t know how many people use marijuana or how big the marijuana market is b) estimates vary because we don’t have a good understanding about how people would react to marijuana legalization c) estimates vary because we don’t know how much is spent on marijuana enforcement d) estimates vary because of different assumptions regarding the tax rate on marijuana, such as whether it is taxed like any other product, or whether there is an additional excise tax on marijuana 49) Research regarding the most effective strategies for combating drug use suggests: a) federally funded youth anti ­drug media campaigns and school testing programs are generally extremely effective at reducing future drug use b) enforcement programs for marijuana, cocaine, & heroin, are generally effective at reducing consumption c) Increased funding for treatment programs could dramatically reduce the consumption of commonly abused & addictive drugs such as heroin and cocaine d) there is little waste involved in the current application of the War on Drugs 50) a) b) c) d) Research regarding the impacts of legalization suggests that: legalization leads to substituting marijuana for alcohol and other drugs legalization leads to a decrease in marijuana use legalization leads to increases in hard drug use legalization leads to increases in alcohol use 51) The Clayton Act of 1914 focuses on: a) general regulation of interstate commerce b) specific acts that should be regulated that lead to anti ­competitive behavior by firms c) obligating the federal government to prevent forms from restraining trade d) establishing that only acts that cause economic harm are illegal 52) From 1915 through 1972, baseball primarily used its anti ­trust exemption to: a) control where baseball teams move b) control the sales of baseball teams from one owner to another c) control the movement of baseball players, as well as their salaries d) ensure that the American League and the National League were the only baseball leagues 53) The big impact of unionization of baseball players has led to: a) frequent strikes regarding player salaries b) significant gains for players regarding arbitration, salary, pension, health benefits, and free agency c) the ability for baseball players to play for whatever team they want, early in their career d) that baseball teams could no longer change cities without league approval 54) What is the anti ­trust legal argument that non ­BCS schools, or the DOJ would make in an anti ­trust suit against the BCS? a) BCS schools hinder small schools’ ability to recruit players b) BCS schools exclude small schools from participating in high value bowl games c) Public opinion clearly desires a NCAA playoff system d) A NCAA playoff system would be more fair, and would promote the sport for all schools 55) Economic data suggests, regarding the economic development argument that: a) stadiums, restaurants, & bars boost employment, sales, and tax revenue b) there is great quality of life value to professional sports teams c) stadiums create very few high paying jobs and spending around stadiums offsets other spending d) stadiums boost local property values 56) The largest share of energy production in the U.S. comes from which source: a) b) c) d) 57) a) b) c) d) 58) a) b) c) d) Petroleum Natural Gas Coal Nuclear The largest supplier for oil in the U.S. is: Canada Mexico Saudi Arabia Iraq Major problems with Coal power include: human costs relating to coal mining accidents environmental costs relating to impurities and pollutants greenhouse gas emissions all of the above Major problems with oil do NOT include: the politics surrounding the concentration of future oil supplies oil spills and other costs of extraction NOx and SOx emissions We will likely “run out” of oil in the next several decades 59) a) b) c) d) 60) The Bush immigration reform bill tried to do which of the following: a) Tie increased border security & workplace enforcement to a path to citizenship for illegal immigrants and a guest worker program b) Prevent amnesty for any illegal immigrants c) Focus solely on increased border security and the deportation of illegal immigrants d) Promote amnesty for illegal immigrants without any increased in border security or workplace enforcement 61) What does research say about children born to illegal immigrants? a) Parents often come to the U.S. for the purpose of having babies who are U.S. citizens b) While many babies are born to families where at least 1 parent is an illegal immigrant, parents usually came for economic reasons and then happen to stay and raise families c) The majority of children in the U.S. are born to families where a parent is an illegal immigrant d) Illegal immigrants frequently come to the U.S. while pregnant 62) Provisions in the DREAM act include: a) That children who immigrated to the U.S. illegally would be allowed to gain citizenship by serving in the military or attending college b) That no illegal immigrants would be allowed to attend public universities in the U.S. c) That all illegal immigrants would be able to gain legal status by paying a fine d) That gays will be able to serve openly in the military 63) The controversial Arizona immigration law required which of the following (against all of which a federal judge has issued an injunction)? a) Anyone charged with a crime has to prove legal status before being released b) Police must stop anyone who appears to be illegal and ask for immigration papers c) All immigrants in the state of Arizona must be able to demonstrate legal status at all times d) All of the above ...
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This note was uploaded on 01/30/2012 for the course POL 1101 taught by Professor White during the Fall '07 term at Georgia Institute of Technology.

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