Economics and government

Which of the following represents a contractionary economic policy?

a. Increasing taxes on the people

Which president can be attributed to the following quote? "These unhappy times call for the building of plans...that put their faith once more in the forgotten man at the bottom of the economic pyramid."

a. Roosevelt's intervention approach

When Zimbabwe began printing off more and more money which of the following occurred? (click all that apply)

a. The value of the Zimbabwe dollar dramatically decreased d. Inflation rates increased

In Citizens United v. FEC the Supreme Court ruled that businesses and other interested groups...

a. may donate an unlimited amount of soft money to PACs, thus leading to the creation of Super-PACs.

What did the 1911 Triangle Factory fire and the 2013 factory collapse in Bangladesh have in common?

b. Both shined a light on unsafe working conditions within their respective countries

Which president can be attributed to the following quote? "Economic depression cannot be cured by legislative action or executive pronouncement.

b. Hoover's "laissez faire" approach

Discretionary spending items in the federal budget are likely to dramatically increase or decrease depending on the party that controls the budget. Which of the following is an example of a discretionary item in the budget?

b. Spending on national parks

All of the following are traditional political values held by most Americans EXCEPT...

b. economic equality

A key feature of capitalism is that...

d. most productive property is owned and operated by private individuals or companies.

Supporters of free trade agreements like the North American Free Trade Agreement (NAFTA) believe that free trade helps the US economy by...

d. opening up foreign markets for US manufacturers.

When the Federal Reserve increases the discount rate (interest rate) it is done with the intention of...

d. slowing inflation rates.

Due to poor weather the supply of tomatoes has fallen dramatically. As a result, the average price of tomatoes will...

increase

d. The constitutional system of checks and balances between the 3 branches

true

Women, minorities, and 18-30 year olds tend to vote...

a. with the Democratic Party.

The primary responsibility for determining monetary policy in the US rests with the...

b. Board of Governors of the Federal Reserve

While communism is about collectivism, capitalism is about...

b. individualism.

The Federal Reserve is considered an independent agency because Federal Reserve Governors...

b. once chosen, have never been removed by a president or by Congress before the end of their term.

A progressive income tax can best be described as a(n)...

b. tax where those with more income pay a higher rate of tax on their income.

In Karl Marx's theory of communism, the two opposing forces were...

b. the proletariat and the bourgeoisie.

One of the key reasons that Social Security is expected to go bankrupt in the next several decades is because...

b. there will be too few workers compared to the number of retirees collecting Social Security.

Policy that describes the impact of the federal budget (including taxes and spending) on the economy is referred to as which of the following?

c. Fiscal policy

While expansionary policies are often more popular than contractionary policies, what is the major problem with a government constantly using expansionary policies?

c. Higher inflation rates would decrease the value of our money

The US government wishes to lessen illegal drug use in America. Because many illegal drugs come from Mexico they decide to increase the number of troops at the US-Mexico border. The affect this would have would be (an)...

c. decrease in supply of drugs.

A Keynesian economist would support all of the following economic policies, EXCEPT...

c. laissez-faire economics.

The US government places tariffs on some foreign goods in order to...

c. persuade Americans to buy US-made goods.

Eminent domain is used by the state to...

c. seize private land for the common good.

Which group would least support a 90% income tax rate with the goal of redistributing that wealth to all?

c. the bourgeoisie

If the Federal Reserve decreased the reserve requirement percentage placed on banks from 20% to 10%, what impact would this have on the money supply?

c. the money supply would increase

Which quote would most likely be attributed to a socialist?

d. "From each according to his ability, to each according to his needs"

Generally speaking, which type of evidence would be most reliable when answering questions of fact in the courtroom?

d. DNA evidence found on the weapon left at the crime scene

What impact did the 26th Amendment have on the political process?

d. Set the minimum voting age at 18

Which of the following has NOT worked to strengthen the powers of the presidency?

d. The constitutional system of checks and balances between the 3 branches

The main reason that US manufacturers have a difficult time competing with Chinese manufacturers is that...

d. as a result of lower standards, unsafe working conditions, and weaker labor unions labor in China is significantly cheaper than in the US.

According to "laissez faire" economic principles the government takes a hands off approach to the economy because...

d. it is believed that the economy will naturally fix itself.

All of the following are examples of monetary policy, EXCEPT when the government...

d. spends more money in order to fund the unemployment program.

An argument in favor of using the Direct Popular Election Plan instead of the Electoral College would be...

d. the candidate that receives the most popular votes would be guaranteed to win the election.

If the Federal Reserve wants Americans to spend more money they should __ the reserve requirement percentage placed on banks

decrease

The New Deal programs and the 2009 American Recovery and Reinvestment Act ("Stimilus Package") are examples of...

expansionary

Winter 2013-2014 saw record amounts of snow fall in NW Ohio. The demand for snow shovels during this season __. As a result, prices of snow shovels __.

increase increase

Which of the following represents an expansionary economic policy?

lowering taxes

In 2008 the US entered an economic recession. President Obama signed the American Recovery and Reinvestment Act that called for $787 billion in spending on various local projects intended on fixing America's infrastructure (roads, bridges, hospitals, schools) and creating jobs. What is the downside to this type of fiscal policy?

public debt

One of the terms in the Treaty of Versailles was for Germany to pay $12 trillion in fines to the Allied Powers. Part of Germany's response to this was to print off mass amounts of money in order to pay back some of the debt. An unintended consequence of such action was...

rapid inflation

Entitlement programs are programs that must be fully funded by the government because people have paid into these programs and expect to get their money back when they retire. Which of the following is the largest entitlement program in the federal budget?

social security