Pols1101 Chapter 16

Which of the following is true of the federal government's response to the coronavirus pandemic's effects in early 2020?

It put into effect a multi-trillion dollar package of both tax changes and targeted spending.

Who argued that national governments should increase their spending to stimulate the economy during an economic recession?

John Maynard Keynes

Which of the following is true of the Trump administration's economic and regulatory policy?

Prior to 2020, it sought to decrease corporate taxes and substantially cut back regulation, indicating a supply-side orientation.

Economists cite all of these factors as evidence of a healthy economy EXCEPT

a decrease in the national tax base.

What was a major goal of the Dodd-Frank Act?

to make banks and financial institutions prove they could survive in a severe economic downturn

To navigate the global economy, each country has its own ________, a collection of tax laws and regulations to support its international commerce.

trade policy

Who wrote Wealth of Nations, which argued in favor of a laissez-faire (hands-off) economic system?

Adam Smith

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

1-3 percent

How many appropriations bills must Congress approve by the end of June to fund the national government each fiscal year?

12

In which year did Congress pass the American Recovery and Reinvestment Act?

2009

Which of the following years had the largest budget deficit?

2009

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

All of these answers are correct.

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

All of these answers are correct.

Which of the following programs is among those defined as mandatory spending obligations?

All of these answers are correct.

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

All of these answers are correct.

When must both the House and Senate agree to the concurrent budget resolution each fiscal year?

April 15

Which governmental body has the constitutionally delegated power of the purse?

Congress

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?

Consumer Financial Protection Bureau (CFPB)

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

Government Accountability Office (GAO)

Which of the following statements about monetarism is true?

It believes that too much money in circulation leads to high inflation.

What was the Federal Reserve's response to the COVID-19 pandemic in early 2020?

It decreased its discount rate nearly to zero and bought Treasury securities.

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

June 15

In 2009, President Obama and Congress passed the American Recovery and Reinvestment Act. This "stimulus package" is based on what type of economic theory?

Keynesian

Which economist developed the theory of monetarism?

Milton Friedman

Which country had the highest Human Development Index score in 2019?

Norway

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

October 1

Payroll taxes fund

Social Security and Medicare.

Congress and which president established the Federal Reserve System in 1913?

Woodrow Wilson

Which of the following is/are among the criteria used by the United Nations to comparatively assess global living standards in the Human Development Index (HDI)?

a long and healthy life, educational opportunities, and decent standard of living

All of these are considered features of a healthy economy by economists and government officials EXCEPT

an increase in imports.

All of the following are tools used by the Fed for setting monetary policy EXCEPT

approving deficit spending to energize the economy.

The legal borrowing limit for the national government is called the

debt ceiling.

According to Keynesian economics, what should the government do during an economic boom?

decrease government spending and possibly increase taxes

The 2020 CARES Act represented

deficit spending to combat the effects of the pandemic.

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

enacting regulations for the purpose of decreasing the national debt.

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

first Monday in February

After World War II, the United States and its international partners shifted toward which type of trade policy?

free trade

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

government-free marketplace transactions

Those most likely to see the American dream as having been achieved or as being within their reach have achieved which of the following?

having a college degree

Which of the following is the total pretax earnings of all residents over the age of 15 living in a home?

household income

Which of the following was NOT among the basic objectives established by the General Agreement on Tariffs and Trade (GATT)?

imposition of nontariff trade barriers

Social regulatory policy

increases the cost of doing business.

Which of the following provide(s) the largest share of tax revenue in the FY 2019 budget?

individual income tax

All of the following are considered nondefense discretionary expenditures EXCEPT

international affairs.

Which of the following was a period of budget surplus for the federal government?

late 1990s

Which era saw the national government take the first steps to regulate workplace rules and conditions?

late 19th century

Which of the following is the income level in the middle of all household incomes?

median household income

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

poverty rate

What type of tax takes a larger percentage of wealthier taxpayers' income and a smaller percentage of the income of those who earn less?

progressive tax

What type of tax takes the same percentage of each taxpayer's income?

proportional tax

What type of tax takes a larger percentage of lower income earners' income and a smaller percentage of the income of those who earn more?

regressive tax

What type of economy is the U.S. economy?

regulated capitalist

Today, efforts to shrink annual deficit spending involves the use of

spending caps on discretionary spending.

The national government encourages individuals and corporations to promote the public good by providing financial support to groups such as homeowners in the form of

tax expenditures.

Fiscal policy is a combination of ________ policy and ________ policy.

tax; spending

Which event led to the end of balanced budgets for a healthy economy, and the onset of deficit spending?

the Great Depression

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

the World Trade Organization

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

the gross domestic product.

Which of the following characterized the U.S. economy in late 2019?

the lowest unemployment rate in decades