Question 1

What caused President H. W. Bush to abandon supply-side economic policies and increase taxes?

Accepted Answer

A)   political pressure to increase social services
B)   need for increased military funding
C)   the pressure to deregulate major industries
D)   the growing national debt
E)   the emergent belief in monetarismF) None of the above
G) A) and D)

Question 2

What date signals the beginning of the national government's fiscal year (FY) ?

Accepted Answer

A)   January 1
B)   April 1
C)   July 1
D)   August 1
E)   October 1F) A) and B)
G) B) and D)

Question 3

Which of the following features is/are part of the American dream?

Accepted Answer

A)   financial security
B)   personal happiness and health
C)   upward social mobility
D)   success through hard work and persistence
E)   All these answers are correct.F) None of the above
G) B) and E)

Question 4

Which of the following is a hallmark of a pure capitalist economy?

Accepted Answer

A)   public ownership of modes of production
B)   government-mandated business practices
C)   economic policy that is influenced by concern for the public good
D)   government-free marketplace transactions
E)   national policies that are enacted to influence the economyF) All of the above
G) None of the above

Question 5

What is the CPI, and what is it used for by the national government?

Accepted Answer

The CPI is the consumer price index. The...

Question 6

Fiscal policy is a combination of

Accepted Answer

A)   tax policy and currency policy.
B)   tax policy and economic policy.
C)   tax policy and spending policy.
D)   economic policy and currency policy.
E)   budget policy and spending policy.F) A) and B)
G) B) and E)

Question 7

The deadline for Congress to complete budget reconciliation, the annual process of rewriting authorization legislation to comply with the concurrent budget resolution, is

Accepted Answer

A)   May 15.
B)   June 15.
C)   July 15.
D)   August 1.
E)   August 15.F) B) and D)
G) C) and D)

Question 8

Which of the following provides the largest share of tax revenue in the FY 2013 budget?

Accepted Answer

A)   social insurance receipts
B)   individual income tax
C)   corporate tax
D)   excise taxes
E)   estate and gift taxesF) B) and E)
G) A) and E)

Question 9

Which event led to the end of balanced budgets and the onset of deficit spending?

Accepted Answer

A)   the War of 1812
B)   the Mexican-American War
C)   the Civil War
D)   World War I
E)   the Great DepressionF) None of the above
G) C) and E)

Question 10

Which of these terms describes the percentage of the population with income below the nationally designated poverty level?

Accepted Answer

A)   poverty level
B)   poverty rate
C)   poverty threshold
D)   poverty mark
E)   poverty medianF) All of the above
G) None of the above

Question 11

Which of these agencies monitors the implementation of the previous fiscal year's budget?

Accepted Answer

A)   Office of Management and Budget (OM
B)  
B)   House Budget Committee
C)   Senate Budget Committee
D)   Congressional Budget Office (CBO) 
E)   Government Accountability Office (GAO) F) A) and E)
G) A) and C)

Question 12

Outline the theories of monetarism and identify monetarists' ideal level of inflation.

Accepted Answer

Monetarism, a theory developed by econom...

Question 13

The total value of all goods and service that are produced within a country's borders is known as

Accepted Answer

A)   productive resources.
B)   the gross national product.
C)   the economic system.
D)   the gross domestic product.
E)   durable goods.F) A) and B)
G) C) and E)

Question 14

Which of the following is the newest of the business-regulating government agencies that was established to help protect consumers of banking and financial industries?

Accepted Answer

A)   Interstate Commerce Commission (IC
C)  
B)   Federal Trade Commission (FT
C)  
C)   Consumer Financial Protection Bureau (CFP
B)  
D)   Congressional Budget Office (CBO) 
E)   Securities and Exchange Commission (SE
C)  F) A) and E)
G) A) and D)

Question 15

What organization, which came into existence in 1995, continues the free trade advocacy of the General Agreement on Tariffs and Trade?

Accepted Answer

A)   the North American Free Trade Organization
B)   the World Trade Organization
C)   the United Nations
D)   the International Trade Organization
E)   the North American Treaty OrganizationF) C) and E)
G) B) and C)

Question 16

Which of the following products and goods is/are part of the Bureau of Labor Statistics' consumer price index, or CPI?

Accepted Answer

A)   food
B)   clothing and shelter
C)   fuel and transportation costs
D)   selected medical costs
E)   All these answers are correct.F) B) and E)
G) None of the above

Question 17

All of the following are responsibilities of today's Fed EXCEPT

Accepted Answer

A)   enacting regulations for the purpose of decreasing the national debt.
B)   setting monetary policy aimed at price stability.
C)   maintaining the stability of financial markets.
D)   providing financial services to depository institutions.
E)   supervising and regulating banking institutions.F) C) and E)
G) B) and C)

Question 18

What yearly inflation rate do monetarists argue ensures an adequate money supply for a healthy economy?

Accepted Answer

A)   less than 1 percent
B)   1-3 percent
C)   3-5 percent
D)   5-7 percent
E)   7-9 percentF) All of the above
G) D) and E)

Question 19

When is the president required by law to submit the executive budget to Congress?

Accepted Answer

A)   first Monday in January
B)   first Monday in February
C)   first Monday in March
D)   first Monday in April
E)   first Monday in MayF) A) and E)
G) B) and D)

Question 20

Which of the following was/were established as part of the Fair Labor Standards Act of 1938?

Accepted Answer

A)   standards for a legal workweek
B)   overtime pay
C)   minimum wages
D)   limits on child labor
E)   standards for a legal workweek, overtime pay, minimum wages, recordkeeping of hours, and child labor limitsF) C) and D)
G) B) and E)

Exam 16: Economic Policy

What organization, which came into existence in 1995, continues the free trade advocacy of the General Agreement on Tariffs and Trade?

Correct AnswerverifiedShow Answer

Which of the following products and goods is/are part of the Bureau of Labor Statistics' consumer price index, or CPI?

Correct AnswerverifiedShow Answer

Which of the following was/were established as part of the Fair Labor Standards Act of 1938?

Correct AnswerverifiedShow Answer

What date signals the beginning of the national government's fiscal year (FY) ?

Correct AnswerverifiedShow Answer

What yearly inflation rate do monetarists argue ensures an adequate money supply for a healthy economy?

Correct AnswerverifiedShow Answer

All of the following are responsibilities of today's Fed EXCEPT

Correct AnswerverifiedShow Answer

Which of the following is the newest of the business-regulating government agencies that was established to help protect consumers of banking and financial industries?

Correct AnswerverifiedShow Answer

Which of the following features is/are part of the American dream?

Correct AnswerverifiedShow Answer

The total value of all goods and service that are produced within a country's borders is known as

Correct AnswerverifiedShow Answer

When is the president required by law to submit the executive budget to Congress?

Correct AnswerverifiedShow Answer

Which event led to the end of balanced budgets and the onset of deficit spending?

Correct AnswerverifiedShow Answer

What is the CPI, and what is it used for by the national government?

Correct AnswerverifiedThe CPI is the consumer price index. The...View AnswerShow Answer

What caused President H. W. Bush to abandon supply-side economic policies and increase taxes?

Correct AnswerverifiedShow Answer

Outline the theories of monetarism and identify monetarists' ideal level of inflation.

Correct AnswerverifiedMonetarism, a theory developed by econom...View AnswerShow Answer

Which of the following provides the largest share of tax revenue in the FY 2013 budget?

Correct AnswerverifiedShow Answer

Which of these agencies monitors the implementation of the previous fiscal year's budget?

Correct AnswerverifiedShow Answer

Fiscal policy is a combination of

Correct AnswerverifiedShow Answer

Which of these terms describes the percentage of the population with income below the nationally designated poverty level?

Correct AnswerverifiedShow Answer

The deadline for Congress to complete budget reconciliation, the annual process of rewriting authorization legislation to comply with the concurrent budget resolution, is

Correct AnswerverifiedShow Answer

Which of the following is a hallmark of a pure capitalist economy?

Correct AnswerverifiedShow Answer

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The CPI is the consumer price index. The...
View Answer

Correct Answer
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Correct Answer
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Monetarism, a theory developed by econom...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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