Question 1

A sharp reduction in a nation's GDP for more than a year accompanied by high unemployment is a(n) ______.

Accepted Answer

A)   inflationary period
B)   economic bust
C)   depression
D)   economic boom
E)   recessionF) B) and E)
G) A) and B)

Question 2

______ caused politicians to turn to monetary policy as a way to manage the economy.

Accepted Answer

High inflation and g...

Question 3

Raising taxes is an example of a fiscal policy.

Accepted Answer

A) True 
 B)False

Question 4

The Budget and Accounting Act of 1921 is significant because it ______.

Accepted Answer

A)   requires a balanced federal budget
B)   created the federal income tax
C)   created the current budget process
D)   requires federal agencies to submit budget proposals to Congress
E)   requires the president to prepare and submit to Congress a federal budgetF) A) and B)
G) C) and D)

Question 5

Which of the following is NOT an argument made in favor of free trade?

Accepted Answer

A)   Free trade helps promote peace.
B)   Free trade discourages socialism.
C)   Free trade limits retaliatory trade policies.
D)   Free trade leads to more jobs.
E)   Free trade leads to lower prices.F) D) and E)
G) A) and B)

Question 6

The use of interest rates to control the money supply in order to regulate the economy is known as ______ policy.

Accepted Answer

A)   budgetary
B)   monetary
C)   fiscal
D)   regulatory
E)   antitrustF) D) and E)
G) None of the above

Question 7

______ is the imposition of trade barriers,especially tariffs,to make trading conditions favorable to domestic producers.

Accepted Answer

A)   Restrictive trade
B)   Protectionism
C)   Free trade
D)   Fair trade
E)   Open tradeF) A) and D)
G) A) and B)

Question 8

Low interest rates ______.

Accepted Answer

A)   will likely lead to a depression
B)   are dangerous to the economy because money will be taken out of circulation
C)   keep people from investing
D)   are a sign of inflation
E)   encourage borrowingF) A) and B)
G) None of the above

Question 9

The use of interest rates to control the money supply in order to regulate the economy is known as ______ policy.

Accepted Answer

The answer of The use of interest rates to control...

Question 10

______ caused politicians to turn to monetary policy as a way to manage the economy.

Accepted Answer

A)   The Great Depression
B)   An inability to keep the federal budget balanced
C)   A people's revolt against taxes
D)   Uncontrollable interest rates
E)   High inflation and growing unemployment in the 1970sF) B) and D)
G) A) and D)

Question 11

The Social Security tax is arguably an example of a regressive tax because ______.

Accepted Answer

A)   people pay taxes on only the first $118,500 of their incomes
B)   only the wealthy qualify for Social Security
C)   today's youth are unlikely to receive Social Security
D)   the elderly are taxed at higher rates than the young
E)   everyone is taxed at the same rate regardless of incomeF) B) and D)
G) A) and D)

Question 12

A tax levied on returns from capital investments,such as profits from the sale of real estate,is a ______ tax.

Accepted Answer

The answer of A tax levied on returns from capital...

Question 13

Government regulations that try to keep monopolies from emerging are known as antitrust policies.

Accepted Answer

A) True 
 B)False

Question 14

The goal of economic policymakers is to ______.

Accepted Answer

A)   increase government ownership of the means of production
B)   increase the size of the swings in the business cycle
C)   increase inflation without undermining the market-driven economy
D)   even out the dramatic cycles of inflation and recession without undermining the vitality and productivity of a market-driven economy
E)   decrease government influence on the economyF) B) and E)
G) A) and B)

Question 15

In recent years,unions have found it difficult to win congressional backing of the Employee Free Choice Act,also known as "card check." What is this bill about?

Accepted Answer

This would let workers choose whether to...

Question 16

In 2012,President Barack Obama called for taxpayers making more than $1 million a year to pay a 30 percent minimum tax-a proposal dubbed the Buffet Rule.

Accepted Answer

A) True 
 B)False

Question 17

The Wagner Act was significant mostly because it ______.

Accepted Answer

A)   curtailed the power of monopolies
B)   was partly responsible for the Great Depression
C)   vastly expanded the power of labor unions
D)   led to fifty years of protectionist trade policy
E)   eliminated congressional control of monetary policyF) B) and E)
G) B) and D)

Question 18

______ is an example of a fiscal policy.

Accepted Answer

A)   Collective bargaining
B)   An antitrust agreement
C)   Raising taxes
D)   Free trade
E)   Lowering interest ratesF) C) and D)
G) D) and E)

Question 19

The Great Depression had the largest historical impact on the U.S.government becoming more involved in economic policy.

Accepted Answer

A) True 
 B)False

Question 20

The current income tax in the United States is an example of a(n) ______ tax.

Accepted Answer

A)   progressive
B)   supply-side
C)   regressive
D)   excise
E)   capital gainsF) A) and E)
G) A) and D)

Exam 17: Economic Policy

The use of interest rates to control the money supply in order to regulate the economy is known as ______ policy.

Correct AnswerverifiedShow Answer

In recent years,unions have found it difficult to win congressional backing of the Employee Free Choice Act,also known as "card check." What is this bill about?

Correct AnswerverifiedThis would let workers choose whether to...View AnswerShow Answer

The goal of economic policymakers is to ______.

Correct AnswerverifiedShow Answer

The Social Security tax is arguably an example of a regressive tax because ______.

Correct AnswerverifiedShow Answer

A tax levied on returns from capital investments,such as profits from the sale of real estate,is a ______ tax.

Correct AnswerverifiedShow Answer

______ caused politicians to turn to monetary policy as a way to manage the economy.

Correct AnswerverifiedHigh inflation and g...View AnswerShow Answer

The use of interest rates to control the money supply in order to regulate the economy is known as ______ policy.

Correct AnswerverifiedShow Answer

The Great Depression had the largest historical impact on the U.S.government becoming more involved in economic policy.

Correct AnswerverifiedShow Answer

The Wagner Act was significant mostly because it ______.

Correct AnswerverifiedShow Answer

Government regulations that try to keep monopolies from emerging are known as antitrust policies.

Correct AnswerverifiedShow Answer

In 2012,President Barack Obama called for taxpayers making more than $1 million a year to pay a 30 percent minimum tax-a proposal dubbed the Buffet Rule.

Correct AnswerverifiedShow Answer

______ is an example of a fiscal policy.

Correct AnswerverifiedShow Answer

A sharp reduction in a nation's GDP for more than a year accompanied by high unemployment is a(n) ______.

Correct AnswerverifiedShow Answer

______ caused politicians to turn to monetary policy as a way to manage the economy.

Correct AnswerverifiedShow Answer

Which of the following is NOT an argument made in favor of free trade?

Correct AnswerverifiedShow Answer

Raising taxes is an example of a fiscal policy.

Correct AnswerverifiedShow Answer

Low interest rates ______.

Correct AnswerverifiedShow Answer

The current income tax in the United States is an example of a(n) ______ tax.

Correct AnswerverifiedShow Answer

______ is the imposition of trade barriers,especially tariffs,to make trading conditions favorable to domestic producers.

Correct AnswerverifiedShow Answer

The Budget and Accounting Act of 1921 is significant because it ______.

Correct AnswerverifiedShow Answer

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This would let workers choose whether to...
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High inflation and g...
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