Final Chapter POLS 355 1

__________ is/are among the most important tools that monetary policy uses to affect the overall economy. a. Foreign monetary investment b. Government spending c. Interest rates d. Taxation rates --- Consider This: Taxation rates are considered to be a fiscal tool

Interest rates

When does the federal government's fiscal year begin? a. January 1--- Consider This: The federal government's fiscal year is different than the calendar year. b. June 1 c. October 1 d. December 1

October 1

What role did the United States play in the Libyan civil war in 2011? a. The United States supplied arms to anti-Gaddafi forces and participated in the air war. b. The United States committed troops to support Libyans' resistance to Gaddafi. c. The United States stayed out of the conflict entirely. d. The United States supplied arms to the Gaddafi regime. - Consider This: NATO supported the public's uprising over Gaddafi.

The United States supplied arms to anti-Gaddafi forces and participated in the air war.

Why did the Bush Administration back away from the Bush Doctrine only three years after announcing it? a. The administration realized that a multilateral approach could reduce tensions with other Middle Eastern nations. b. The administration bowed to pressure from the United Nations. c. The administration felt that its objectives under the Bush Doctrine had been achieved. d. The administration decided a unilateral approach would best serve U.S. national security interests. -Consider This: A unilateralist approach characterized the Bush Doctrine.

The administration realized that a multilateral approach could reduce tensions with other Middle Eastern nations.

Laissez-faire economics holds which of the following to be true? a. The government should actively intervene in the economy. --- Consider This: Government intervention historically has been undertaken in response to laissez faire policies. b. The government should not take an active role in the economy. c. The government should do everything possible to reduce unemployment. d. The government should lower interest rates during a recession.

The government should not take an active role in the economy.

What is the historical significance of 'Black Friday' in 1929? a. The stock market crashed which ushering in the Great Depression and led to the establishment of the Securities and Exchange Commission. b. The stock market lost one quarter of its value due to a computer glitch. --- Consider This: This incident took place on Monday October 19, 1987. c. An oil shortage stalled the economy in the late 1970s d. Black Friday sparked the great recession.

The stock market crashed which ushering in the Great Depression and led to the establishment of the Securities and Exchange Commission.

If the Federal Reserve raises the federal funds rate, what is likely to happen? a. There will be more money available for investment and growth. --- Consider This: An increase in the federal funds rate will slow down the economy by increasing the cost of borrowing, b. Inflation will increase, and unemployment will decrease. c. Both inflation and unemployment will decrease. d. There will be less money available for investment and growth.

There will be less money available for investment and growth.

How are members of the military currently selected? a. They are all volunteers. b. They are all conscripted. - Consider This: Conscription is a method that is better known as drafting. c. About half volunteer and half are conscripted. d. Officers are conscripted and enlisted soldiers are drafted.

They are all volunteers.

The __________ provides an international forum for reaching trade agreements and resolving disputes among its 177 members. a. GATT b. NAFTA - Consider This: NAFTA is the North American Free Trade Agreement and is an agreement between Mexico, Canada, and the United States. c. SEC d. WTO

WTO

Which of the following is an example of monetary policy? a. decreasing federal spending --- Consider This: Federal spending decisions are examples of fiscal policies b. increasing taxes on wealthy Americans c. lowering interest rates d. lowering state property and sales tax

c. lowering interest rates

Which of the following best characterizes the federal budget process? a. complicated c. nonpolitical --- Consider This: Due to high partisan polarization, the budget process is extremely partisan in contemporary American politics. d. short-sighted e. streamlined

complicated

In general, a recession most likely does which of these? a. reduces the budget deficit b. leads to higher unemployment c. leads to tax increases - Consider This: Taxes tend to decrease during a recession. d. leads to higher inflation

leads to higher unemployment

What is the main foreign and defense policy threat posed by Iran? a. nuclear weapon capability b. economic collapse c. trade disagreements d. conventional arms - Consider This: Conventional arms are not the main threat posed by Iran.

nuclear weapon capability

According to realism, what is the main aim of foreign policy? a. protecting natural resources such as timber, oil, and fertile farmland b. promoting a country's self-interest c. finding solutions to problems shared by several nations d. reducing conflict in the interest of global peace - Consider This: This is the goal of idealist foreign policy.

promoting a country's self-interest

Historically, U.S. foreign and defense policy has been based on two competing worldviews known as __________ and __________. a. isolationism; internationalism - Consider This: Isolationism and internationalism are competing views that are related to defense from global problems. b. realism; idealism c. unilateralism; multilateralism d. hard power; soft power

realism; idealism

A payment system that involves one source of funding is known as a _______ a. pay-as-you-go system --- Consider This: A pay-as-you-go system provides funding for immediate purposes. b. monetary system c. austerity system d. single payer system

single payer system

Which of the following countries is a permanent member of the United Nations Security Council? a. Germany Consider This: Although an important global actor, Germany is not a permanent member. b. Spain c. Italy d. the United States

the United States

The cost of borrowing money is directly linked to the __________. a. the federal funds rate b. the prime rate --- Consider This: The prime rate is determined by another figure in this list. c. the fixed rate d. the adjustable rate

the federal funds rate

What is the main goal of fiscal policy? a. to affect how much money is available to state governments for capital projects --- Consider This: While a vital tool of economic and social policy, this option best describes monetary policy, rather than fiscal policy. b. to determine how much interest the government will pay on the federal debt c. to stimulate the economy by increasing the number of exports into the United States d. to use taxes and government spending to help stimulate or slow down economic growth

to affect how much money is available to state

What is the main purpose of monetary policy? a. to affect how much money is circulating through the economy b. to control the amount of public debt sold to foreign states c. to equalize income disparity among citizens of the United States d. to expand the government's revenue base so as to reduce the deficit --- Consider This: The setting of taxation rates is an example of fiscal policy rather than monetary policy.

to affect how much money is circulating through the economy

When it comes to taxes, which of the following statements is true? a. There is much agreement on what is the best type of tax, but not much agreement on the tax rates. b. Income taxes provide the most consistent stream of revenue for the government. c. Overall, there is considerable disagreement over what is the best type of tax. d. Sales taxes are the primary mechanism by which the federal government raises revenues.--- Consider This: Sales tax is a state-run tax, and varies by state.

Overall, there is considerable disagreement over what is the best type of tax.

When imported goods exceed exported goods, the effect on the balance of trade in the United States is called the ______. a. federal funds rate b. budget deficit c. national debt --- Consider This: The United States importing more than it exports contributes to the debt, but it does not cover the totality of it. d. trade deficit

trade deficit

__________ is organized around a series of "desks" representing different parts of the world and foreign policy missions. a. The Department of Homeland Security b. The State Department c. The Department of Defense - Consider This: The Department of Defense is the name given to the defense bureaucracy that includes the Secretary of Defense, as well as secretaries of the various arms of the military. d. The Office of Terrorism and Finance

The State Department

What is the purpose of Medicare? a. To insure children b. To insure the poor --- Consider This: This insurance program is called Medicaid. c. To provide free health screenings for college students d. To insure older Americans against poor health

To insure older Americans against poor health

The Obama administration argued that it is in the world's best interests to limit access to nuclear materials. This is an example of which of the following policy approaches? a. realism - Consider This: Realism focuses on the tendency of nations of operate from self-interest, as opposed to the good of world. b. idealism c. isolationism d. containment

idealism

If the Federal Reserve wanted to slow the rate of economic growth, it would most likely __________. a. encourage the president to lower taxes b. increase interest rates c. increase the money supply d. lower interest rates --- Consider This: Lowering interest rates is thought to stimulate economic growth because it allows for more borrowing to take place.

increase interest rates

Although the Obama administration favored diplomacy in international affairs, it showed a willingness to use military force in __________. a. Afghanistan b. China c. North Korea d. Russia - Consider This: While the United States and Russia have a tenuous and complicated relationship, Obama never employed military force during his presidency.

Afghanistan

Crop subsidies to Farmers is an example of _________. a. Categorical Aid b. Conditional Aid c. Corporate Welfare d. Monetary Policy --- Consider This: Monetary policy concerns the setting of interest rates and the circulation of the money supply.

Categorical Aid

The Constitution gives __________ the power to borrow, coin, and print money. a. Congress b. the Treasury Department --- Consider This: Article II gives the president the power to appoint the officers of government who administer economic and social policy. c. the Federal Reserve Board d. the president

Congress

What statistic is defined as a means of measuring inflation that shows how much more or less consumers are paying for the same goods and services? a. Consumer Price Index b. Poverty c. Income inequality d. GDP --- Consider This: GDP covers the total value of all goods and services produced by an economy over a specific period of time.

Consumer Price Index

The most recent war in Iraq began under __________ and ended under __________. a. Bill Clinton; George H. W. Bush b. Bill Clinton; George W. Bush c. George H. W. Bush; George W. Bush-- Consider This: Combat in Iraq began under the younger president Bush. d. George W. Bush; Barack Obama

George W. Bush; Barack Obama

Which of the following characterizes the latest trends in income inequality? a. Inequality is shrinking --- Consider This: While income inequality was reduced during the 1990s, this trend has not held in the 21st century. b. Inequality is growing c. Inequality has not changed d. Inequality has been volatile

Inequality is growing

Which of the following was a fundamental part of the George W. Bush administration's case for the 2003 war in Iraq? a. Iraq attacked Israel in 2002 with SCUD missiles and was threatening to do so again. b. Iraq had weapons of mass destruction. c. Saddam Hussein had provided Al-Qaeda with military intelligence and training. - Consider This: A link between Saddam Hussein and Al-Qaeda was not the reason that the Bush administration gave for the 2003 war in Iraq. d. Saddam Hussein had permitted Osama bin Laden to use Iraq for training terrorists.

Iraq had weapons of mass destruction.

Which of the following entities is responsible for setting the federal funds rate in the United States? a. the Congressional Budget Office - Consider This: The Congressional Budget Office is an agency within the legislative brand that helps to manage budget and other economic information for Congress. b. the Executive Office of the President c. the Federal Reserve Board d. the Office of Management and Budget

The Federal Reserve Board

a. The director of the Central Intelligence Agency needed additional authority to combat the growing threat posed by weapons of mass destruction. b. The September 11, 2001, terrorist attacks revealed flaws in the way the U.S. intelligence community operated. c. There was a need for the decentralization of authority within the intelligence community to prevent competition between agencies. - Consider This: The goal of Congress was to better coordinate the large number of people working in diverse intelligence agencies. d. Congress wanted the Bush administration to have greater influence over the intelligence community.

The September 11, 2001, terrorist attacks revealed flaws in the way the U.S. intelligence community operated.

Who instituted the Marshall Plan and who benefited directly from it? a. The Soviet Union instituted the Marshall Plan to benefit Eastern Europe. b. Germany instituted the Marshall Plan to benefit the United States. -- Consider This: The Marshall plan was not specifically targeted at former enemies. c. Italy instituted the Marshall Plan to benefit Western Europe. d. The United States instituted the Marshall Plan to benefit Eastern Europe.

The United States instituted the Marshall Plan to benefit Eastern Europe.

Which of the following statements most accurately reflects Americans' views about foreign aid? a. The United States spends too much on foreign aid. b. The United States should spend more on foreign aid. - Consider This: Most Americans do not believe that the U.S. should spend more on foreign aid. c. Foreign aid comprises a very small percentage of the federal budget. d. The United States spends much less on foreign aid than do other Western democracies.

The United States spends too much on foreign aid.

Which of the following are the three steps of the federal budget process? a. The president proposes a budget, Congress Rejects or revises through the appropriations process, the president approves all appropriations bills. b. Congress proposes a budget, the President rejects or revises through the appropriations process, the Congress approves all appropriations bills. --- Consider This: While the Congress originates all taxation and spending bills, the president customarily submits a non-binding budget prior to the start of the fiscal year. c. The president proposes a budget, the supreme court determines if the budget is constitutional, the Congress then approves all appropriations bills. d. An election is held, the president approves appropriations, Congress rejects or revises the appropriations.

The president proposes a budget, Congress Rejects or revises through the appropriations process, the president approves all appropriations bills.

Which of the following is true regarding entitlement spending? a. They are designed to increase the money supply to improve economic growth. - Consider This: Entitlement spending is a term often used when discussing Social Security and Medicare. b. They create a serious ongoing financial burden on the federal government. c. They reduce the overall cost of compliance for major industrial sectors. d. They reduce the overall cost of doing business overseas.

They create a serious ongoing financial burden on the federal government.

What is the purpose of Social Security in the United States? a. To provide income to impoverished Americans --- Consider This: While a federal program exists to do so, it is not called social security. b. To provide healthcare to young children c. To provide guaranteed income to older Americans d. To protect against crime

To provide guaranteed income to older Americans

If you support laissez-faire economic policies, you would generally favor __________. a. a reduction in economic regulation b. an increase in economic regulation c. an increase in the collective bargaining rights for labor unions d. an increase in the tariffs assessed on imported goods --- Consider This: Laissez-faire economic policies seeks to reduce government intervention in the economy, to let the free market determine winners and losers in the economy.

a reduction in economic regulation

Which of the following most accurately describes the 2008 financial crisis in the United States? a. a depression --- Consider This: The United States has not suffered an economic depression since the Great Depression in the 1930s. b. a mild recession c. a severe recession d. an inflationary cycle

a severe recession

The Obama administration's foreign and defense policy has been largely guided by cold calculations of the costs and benefits of action. It can thus be described as a(n) __________ approach. a. realist b. unilateralist - Consider This: Unilateralism is a philosophy wherein individual nations act on their own in facing other nations and the threats posed by those nations. c. isolationist d. opportunistic

a. realist

Why do most economists oppose protectionism? a. because it contributes to the balance of trade deficit b. because it artificially lowers prices, hurting businesses --- Consider This: Protectionism is thought to artificially raise prices on imports due to the application of tariffs. c. because it gives labor unions too much power d. because it prevents the efficient use of resources

because it contributes to the balance of trade deficit

What is the most serious common threat posed to the United States by both Iran and North Korea? a. fundamentalist ideology b. trade wars c. nuclear weapon ambition d. communism - Consider This: Iran is not a communist country.

c. nuclear weapon ambition

Who is included in the unemployment rate? a. people who have taken jobs below their skill levels --- Consider This: This is considered when measuring what is known as underemployment. b. stay-at-home parents who are not looking for jobs c. able-bodied workers who are looking for jobs but cannot find them d. people who would like to work, but have given up on finding a job

d. people who would like to work, but have given up on finding a job

If a government wanted to use monetary policy to increase economic growth, which of the following steps should be taken? a. decrease interest rates to increase the amount of money in supply b. increase the amount of foreign currency kept on reserve in U.S. banks c. increase the amount of public revenue for investment by raising taxes d. increase government spending on public works projects --- Consider This: While this step would increase economic growth, it is an example of fiscal policy, rather than monetary policy.

decrease interest rates to increase the amount of money in supply

What is the primary responsibility of the secretary of defense? a. intelligence b. defense policy c. homeland security d. military policy - Consider This: The Joint Chiefs of Staff is responsible for military policy.

defense policy

Starting in 2013, the international community forced the Syrian government to take what action? a. reveal the location of suspected terrorists hiding in the country b. relinquish control of the national government to the rebel fighters c. dismantle its nuclear facilities Consider This: Nuclear disarmament is not the goal for Syria. d. destroy its chemical weapons

destroy its chemical weapons

In signing "The Road Map to Peace," what did Israel agree to do? a. dismantle settlements of Israeli citizens in the occupied territories b. dismantle its nuclear weapons facilities c. stockpile nuclear weapons to deter Iran from launching a nuclear attack d. arrest and restrain individuals planning to conduct violent attacks in the occupied territories - Consider This: This was something that Palestine agreed to.

dismantle settlements of Israeli citizens in the occupied territories

Perhaps Government's most important responsibility in a free market economy is to __________. a. ensure competition b. provide education --- Consider This: While the federal government plays a role in education c. restrain labor unions d. support agriculture

ensure competition

The Bush Doctrine, announced shortly after 9/11, reserved the right of the United States to attack any nation under which of the following circumstances? a. only with the support of U.S. allies b. even without the support of U.S. allies c. even without the support of U.S. allies, but only after all diplomatic attempts had failed - Consider This: The Bush Doctrine was supported by a series of speeches that argued that the nations such as the U.S. should be free to defend themselves against "imminent danger". d. only with the support of U.S. allies, and only after all diplomatic attempts failed

even without the support of U.S. allies

Which of the following is the total market value of all goods and services produced in an area during a year? a. gross economic output --- Consider This: Economic output is another term for this, but it is not a formally recognized measure. b. gross domestic product c. maximum national product d. national economic performance

gross domestic product

The size of the national debt is __________. a. declining b. growing c. insignificant --- Consider This: As the debt grows, so do interest payments on the debt. d. unchanged

growing

Which of the following is a consequence of government subsidies to the farming industry? a. lower food exports b. higher food prices c. lower food prices d. fewer jobs in agriculture --- Consider This: Subsidies help to prevent the elimination of agricultural jobs.

higher food prices

Which of these is most consistent with the philosophy of Keynesianism? a. interest rate increases by the Federal Reserve b. government decisions to increase the money supply c. increases in government spending during recession d. deregulation of the economy --- Consider This: Economic deregulation is a strategy consistent with laissez faire economics.

increases in government spending during recession

Upon taking office in 2009, which of the following policies did President Obama advocate for in order to deal with the economic crisis? a. increasing exports b. increasing government spending c. raising interest rates - Consider This: Obama's policy to stimulate the economy may have sounded counterintuitive to some. d. enacting stricter tax policies

increasing government spending

U.S. monetary policy involves which of the following? a. import and export policies b. interest rates and the money supply c. supply-side economics d. the national debt and the budget deficit --- Consider This: The national debt and the deficit are examples of fiscal policy.

interest rates and the money supply

The 1935 Wagner Act guaranteed _______ __________. a. right to work legislation --- Consider This: So called right to work legislation is seen by many to weaken the influence of labor unions. b. public contracts c. the right to form a labor union d. labor injunctions

labor injunctions

The Great Depression pitted economists favoring __________ against those favoring __________. a. regulatory policy; deregulation b. monetary policy; fiscal policy c. protectionism; free trade --- Consider This: While protectionism was found to have contributed to the depression, it was considered secondary to another root cause. d. laissez-faire economics; Keynesian economics

laissez-faire economics; Keynesian economics

During the Cold War, the notion of __________ kept both the United States and the Soviet Union from using their nuclear weapons, but also kept each on constant alert in case the other dared to act first. a. mutual active deterrence - Consider This: The concept in question made military conflict unlikely. b. multilateral accord doctrine c. mutual assured destruction d. military action detonation

mutual assured destruction

One of the primary reasons for the prolonged nature of the war in Afghanistan was __________. a. nation building b. protection of religious freedom - Consider This: While religious freedom is an aspect that Westernized countries tend to value, it is not the reason for prolonged presence in Afghanistan. c. retaliation for the bombing of the USS Cole d. protection of Iraq from Afghan military attacks

nation building

If government wanted to prevent or break up monopolies, it would do which of the following? a. reduce economic regulation - Consider This: A reduction in economic regulation would be very unlikely to break up or prevent monopolies. b. pass antitrust legislation c. pass an economic stimulus package d. reduce interest rates

pass antitrust legislation

Social security is funded through equal _____ tax contributions from employers and employees. a. income - Consider This: Income taxes are paid entirely by employees. b. payroll c. property expenditure d. value-added

payroll

Inflation is best understood as the rate at which __________. a. gross domestic product expands ---Consider This: Inflation has the effect of reducing the gross domestic product b. prices for goods and services decrease c. prices for goods and services increase d. the federal government increases taxes to raise revenue

prices for goods and services increase

Worries about international competition often lead domestic producers to call for __________. a. anti-trust legislation --- Consider This: Anti-trust legislation is directed against monopolies and is meant to ensure domestic competition. b. an international trade injunction c. protectionism d. a value-added tax

protectionism

Congress can exercise influence over foreign policy through its power to __________. a. command the armed forces - Consider This: The president's role as commander in chief grants this power. b. ratify treaties c. recognize the sovereignty of foreign countries d. receive diplomats

ratify treaties

President Obama's approach to securing peace between Israel and its neighbors is an illustration of __________. a. the power of deterrence b. the power of economic sanctions c. hard power - Consider This: Hard power is characterized by military might or the threat thereof. d. soft power

soft power

Which of the following is comprised of a broad array of the president's foreign policy advisers and is housed within the White House? a. the State Department - Consider This: The State Department has diplomats in every corner of the world that contribute to foreign policy. b. the Department of Homeland Security c. the National Security Council d. the Central Intelligence Agency

the National Security Council

Which international organization was created in 1945 by the victors of World War II? a. the League of Nations- Consider This: The League of Nations was a failed first attempt at creating an international peacekeeping organization. b. the United Nations c. the World Trade Organization

the United Nations

The signing of the North American Free Trade Agreement has had a significant impact on the economies of __________. a. the United States, Mexico, and Canada b. the United States, Canada, and Greenland c. the United States and Cuba --- Consider This: Up until 2016, the United States had a decades long trade embargo with Cuba. d. the United States and Panama

the United States, Mexico, and Canada

Who serves on the Joint Chiefs of Staff? a. the cabinet secretaries b. the commanding officers of each of the services c. the president's foreign policy advisers d. the secretary of defense, the secretary of homeland security, and the director of the Central Intelligence Agency -- Consider This: The Chiefs are military leaders.

the commanding officers of each of the services

Advocates of aggressive monetary policy contend that the key factor affecting the economy's performance is __________. a. the federal funds rate b. inflation c. the money supply d. tax expenditures --- Consider This: Taxation is an example of fiscal policy.

the money supply

Which is a role of the National Security Advisor? a. to provide the president with information that reinforces the president's foreign policy positions b. to act as a liaison between the Department of Defense and the military - Consider This: The Joint Chiefs of Staff liaises between the president, National Security Council, and secretary of defense. c. to lead the Department of Homeland Security d. to brief the president about foreign and defense information as it flows through the White House

to brief the president about foreign and defense information as it flows through the White House

What was the main purpose of the Marshall Plan? a. to protect Eastern Europe from undue influence of the Soviet Union in the wake of World War II - Consider This: Containment prevented the spread of Soviet influence in Eastern and Central Europe following World War II. b. to help rebuild Europe after World War II so that it would be less vulnerable to communist influences c. to prevent the spread of weapons of mass destruction to unstable governments d. to repair relations between the United States and the Soviet Union near the end of the Cold War

to help rebuild Europe after World War II so that it would be less vulnerable to communist influences

What is the purpose of government regulation of the economy? a. to increase the revenue collected by the federal government b. to increase the level of profits for multinational corporations c. to minimize the costs of doing business for corporations --- Consider This: While regulation is seen as a necessary public good, by their nature, regulations increase the costs of doing business for corporations. d. to minimize abuses and promote competition

to minimize abuses and promote competition