When the government’s goals are embodied in a law or an order, backed by punishments or rewards, it is best described as
What is the most important way the government affects personal and corporate investments?
Promoting investor confidence through policies enforcing stability and regard for the law
Which of the following is not a goal of governmental intervention in the economy?
promoting corporate accountability
The Securities and Exchange Commission was established
After the stockmarket crash of 1929
Which of the following is not a function of the Securities and Exchange Commission?
It protects the confidentiality of all sales of stocks and bonds
Which of the following are the three basic prerequisites for economic growth?
public investment, innovation, strong workforce
The goal of the Works Progress Administration (WPA) was to
Put unemployed persons to work on public projects
What event marked the major historical turning point in the relationship between the government and the marketplace?
What did the Great Depression and World War II do to the public’s expectations regarding employment?
They showed that the government could help to ensure full employment
When the price level of goods and services increases over several months, it is called
Which of the following was not one of the goals of the American Recovery and Reinvestment Act of 2009?
providing for a national health care system
Public policy can be embodied in all of the following forms except
All of the following are strategies to combat inflation except
increasing the amount of government spending on public works projects.
______ are given to states and local governments on the condition that all expenditures are limited to the problem or group specified by law.
Which of the following is not a way in which the government promotes business development?
Which of the following was not a major form of economic promotion by the federal government in the nineteenth century?
public works projects
Which of the following does the Small Business Administration (SBA) provide?
Before the 1930s, relations between labor and management in the United States were
among the most violent in the world
Vehicle safety is one of the chief responsibilities of the Department of
Which of the following actions marked a decisive break with the tradition of the federal government promoting compromises between labor and management?
In 1981, Ronald Reagan fired striking air traffic controllers and hired permanent replacements to fill their jobs
Upton Sinclair’s 1906 exposé The Jungle revealed
The unsanitary practices at meatpacking plants
During the 1960s, Ralph Nader was influential as
a consumer advocate
Which of the following has not been a major goal of the government’s involvement in the economy?
Promoting economic equity and fairness for all citizens
Adam Smith’s theory of ______ argues that many individual economic transactions come together to create a greater good for all.
the invisible hand
Classic laissez-faire theory argues all of the following except that
a truly efficient government allows private enterprise to provide all government services
Which of the following is the most important economic value for supporters of laissez-faire?
Which U.S. president once said, “I am now a Keynesian”?
What economic development, according to many critics, has made Keynesian economics less useful?
the rise of international trade
Who among the following advocated for laissez-faire capitalism?
Those who believe in ______ argue that the government’s role in regulating the economy should be limited to regulating the supply of money.
The idea that the government can stimulate a slow economy by increasing public spending or cutting taxes is called
Which statement is the key argument of John Maynard Keynes?
Government can pull an economy out of a recession by stimulating demand and creating a cycle of increased production and jobs
When did Keynesian economic ideas become government practice in the United States?
Something that must be supplied by the government because it cannot be provided by the marketplace is called
a public good
Who was the most prominent monetarist in the United States?
Which of the following best describes the views of Milton Friedman?
Government should let the growth in the money supply match the rate of economic growth
Which economist is best known for arguing that there is an optimal rate of taxation, and if taxes go above this rate, tax revenues will shrink because economic activity will decline?
Arthur B. Laffer
How did the Federal Reserve respond to the terrorist attacks of 9/11?
It cut interest rates to promote increased investment and spending
Which of the Founders was most responsible for the establishment of the Bank of the United States?
______ is the current chair of the Federal Reserve Board, appointed by George W. Bush in 2005.
Which of the following statements about the Federal Reserve Board (FRB) is false?
The FRB is part of the Department of the Treasury
Open-market operations describes
The method by which the federal reserve buys and sells government securities to increase or decrease the supply of money in the economy
What is the reserve requirement?
The rule that every bank must have a certain amount of cash and negotiable securities on hand at all times
If the Federal Reserve wants to help boost a sagging economy, which one of the following is the most direct way it can do this?
Lower interest rates so that banks can provide more loans at cheaper rates to individuals and businesses
Which of the following is the best example of a public good?
the interstate highway system
The power to raise or lower the tax rate is part of
A tax on imported goods is called a
Before World War II, ______ of federal revenue was generated from individual income taxes.
less than 15 percent
When people in the lower income brackets pay a larger percentage of their income toward a tax, it is called ______ taxation.
Sales taxes are ______, and most income taxes are ______.
A(n) ______ is an incentive in the tax code for individuals and corporations to invest their money in ways the government desires in exchange for a reduction in tax liabilities.
______ were the centerpiece of George W. Bush’s economic policy.
Why did the Democrats believe that the 2001 tax cuts should only remain permanent for those making less than $250,000 a year?
High income earners (those making more than $250,000 a year) had benefited disproportionately from economic growth in the early 2000s
The ______ is determined by the amount government spending exceeds government revenue in a fiscal year.
In order to have reliable information about the costs and impact of economic policies, Congress created the ______.
Congressional Budget Office
Why do many businesses prefer Congress to regulate the economy?
One national regulation is better than the inconsistencies and disparities of different state laws
Which of the following is not an example of mandatory spending?
Approximately what percentage of the federal budget is made up of uncontrollables?
______ policies are designed to eliminate the abuses of powerful ______.
What did Congress see as the principle cause of the economic recession that began in 2007?
excessive risk taking by investors
______ are government grants of cash or other valuable commodities, such as land, used to promote activities desired by the government.
Why have politicians always favored using subsidies to promote certain economic activities?
they can be treated as “benefits” that can be spread widely in response to many demands
Which of the following is not a benefit to government provided by contracting?
Governemnt officials almost always use contracting to award businesses and corporations that donated substantial amounts of money to their political campaigns
Which of the following is not one of the concerns politicians have to consider when attempting to pass regulations that seek to protect the environment?
public opinion, which overwhelmingly favors economic interests over the environment
The United States has ______ percent of the world’s population, and is responsible for ______ percent of its greenhouse gas emissions.
Most of the groundbreaking environmental laws were written in the
Which of the following statements about the relationship between government and capitalism is false?
Before the progressive era, the market place was untouched by government interference
Setting emissions standards for each industry, while allowing companies to trade “carbon credits” is an approach to environmental policy known as
cap and trade
The Kyoto Protocol was designed to
set binding targets for greenhouse gas emissions to be met by each country
Which of the following was not a result of the 2009 Copenhagen Summit?
the meeting ended with a legally binding agreement between countries to limit greenhouse emissions across the world
What year marked the beginning of the Great Depression?
Which of the following is the best description of the changing expectations of government’s role in the economy since the 1930s?
people hold the government responsible for a healthy economy
The most consistently powerful nongovernment actors in determining economic policy are
Which of the following is not a possible cause of the increase in economic inequality over the past several decades?
the collapse of the domestic high-tech industry
Which of the following was a driving force for the economic growth during the late nineteenth century?
The index of the total output of goods and services produced in a national economy is called the
gross domestic product
The goals of American social policy are
Which of the following is an example of nineteenth-century “indoor relief”?
the police station
Which group was the first to receive government assistance throughout the United States?
mothers with dependent children
Social case work, in the nineteenth and early twentieth centuries, was largely concerned with
personal counseling and “mental hygiene”
How did the Great Depression change American attitudes about welfare?
It revealed that poverty could be caused by a flawed economic system, not just by personal irresponsibility
When was Social Security established?
Which of the following is not a program of forced savings?
Temporary Assistance to Needy Families
Social Security is a good example of
a contributory program
Which of the following statements about Social Security is false?
Contributors receive benefits in strict proportion to their contribution
Medicare is a ______ program; Medicaid is a ______ program.
The periodic adjustment of benefits or wages that takes into account the increased cost of living is called
Why have Americans typically been apprehensive about government efforts to reform health care?
they fear reform will be too costly and will jeopardize current health care arrangements
A cost-of-living adjustment is based on what?
the rate of inflation
When potential recipients of a benefit must establish their genuine need, the government program is called
What important noncontributory program was abolished by Congress in 1996?
Aid to Families with Dependent Children
When was Medicare established?
The Temporary Assistance to Needy Families program is administered
by the states with benefit levels varying between states
Which of the following statements about noncontributory programs is false?
the existence of these programs dates from the Civil War
Which program was designed to help augment the benefits to the aged, blind, and disabled?
Supplemental Security Income
Which of the following is an in-kind benefit?
How does an entitlement differ from a right?
Unlike an entitlement, a right cannot be taken away by an act of congress
What was the significance of the Supreme Court case Goldberg v. Kelly?
It held that public assistance benefits could not be revoked without due process of law
Which of the following is not a goal of American social policy?
closing the gap between rich and poor
What do public opinion polls reveal about welfare policies?
they are among the most disliked government programs
What was the reason behind Progressive-era welfare for single mothers?
reformers wanted women to stay home with their children rather than going to work
The welfare reforms of 1996 did all of the following except
taking the federal government out of welfare policy, granting all authority to the states
Which of the following can be concluded from the results of the 1996 welfare reforms?
the reforms have reduced the number of people on welfare, but have done little to reduce poverty
The main change in welfare policies since 1996 is
increased use of non-cash assistance
Approximately what percentage of the current federal budget is spent on entitlement programs, such as Social Security and Medicare?
Over the past three decades, the level of federal payroll tax has ______, and the level of federal corporate taxes has ______.
Which of the following social policies is the most costly to the government?
Which of the following is not an identifiable problem with Social Security?
the political consensus supporting a federal retirement program is crumbling
The idea of ______ was at the heart of George W. Bush’s 2005 plan for Social Security reform.
The goals of social policy
reflect changing views about which risks should be borne by the individual or shared by society
After the election of 2004, President George W. Bush announced that ______ would be the centerpiece of his domestic policy.
Social Security Reform
The first federal government assistance in education came
in 1785, when the federal government set aside land for public schools
What is the most significant force determining the distribution of opportunities in the United States?
What was the most significant education policy developed by the federal government in the nineteenth century?
the establishment of land-grant colleges
What event brought federal attention to elementary school education?
the fear that the soviets were winning the cold war through better technology
The idea that all people should have the freedom to use whatever talents and wealth they have to achieve their goals is called
equality of opportunity
Which of the following statements about the No Child Left Behind Act is false?
it creates a standard national test for all students
Which of the following was a key part of President Obama’s overhaul of No Child Left Behind?
a proposal to change the criteria for allocating $14 billion in federal assistance to schools from a per pupil formula to a system of competitive grants
Which of the following is not a reason why the No Child Left Behind Act has been controversial?
the states were made responsible for setting standards and devising appropriate tests
Charter schools are best described as
public schools that are free to design special curricula
Who was in charge of caring for the poor during the nineteenth century?
Since the 1930s, American employment and training programs have
fared poorly in terms of both expense and results
Which of the following was created during the New Deal?
Works Progress Administration
When was the U.S. Public Health Service founded?
What was the result of the efforts to reform health care in the United States in 1994?
Health care reform met resistance and no bill was voted on by congress
In 2010, approximately what percentage of American workers were offered health insurance through their jobs?
Which of the following was not included in the congressional plans for health care reform?
a “public option” allowing individuals to acquire medical coverage directly from the government
The central thrust of federal housing policy has been to
In 2007 and 2008, the government faced a housing crisis caused by
Which of the following is the strongest factor in predicting which groups in society receive the most benefits from government’s social policies?
groups that are the most politically powerful
Which of the following groups receives the most benefits from government’s social policies?
the middle class
When did the American welfare state begin?
Which of the following groups receives the least benefits from government’s social policies?
Which of the following least explains why the elderly receive a large share of social benefits?
most member of congress are themselves elderly or soon will be
AARP has a membership of approximately ______ members.
Between 1959 and 2004, the percentage of elderly Americans living in poverty has gone from ______ to ______.
35 percent, 10 percent
______ are programs where the government provides a tax deduction for spending on health insurance and other benefits by both employers and employees.
Which of the following is the best example of the shadow welfare state?
workplace medical insurance
What is the shadow welfare state?
social benefits that are distributed by private employers who are being subsidized by the government
Which of the following programs most benefits the working poor?
earned income tax credits
Which of the following is not a reason the working poor receive such a small amount of social policy benefits?
the working poor are often considered undeserving by public opinion
Since the welfare reforms of 1996, what is the primary reason for receiving federal cash assistance if one is nonworking and able-bodied?
the recipient is caring for children
What was the primary problem with private charities before the development of the welfare state?
they would make subjective decisions on who was deserving or undeserving of aid
Since the mid-1990s, by how much has the number of welfare recipients declined in the United States?
Which of the following statements is incorrect?
men are more likely to be poor than women
Which of the following groups are more than twice as likely as other Americans to be below the poverty line?
According to the text, why is it difficult to lobby for the interests of poor children?
children cannot vote
What was outdoor relief distributed by private charities?
What was the main fear concerning the consequences of outdoor relief?
it perpetuated poverty
Which of the following is not a component of American foreign policy?
The policy of striking a nation that you fear might be contemplating hostile actions is called
A ______ nation is one with unstable leadership, whose polices are driven by ideology rather than by economic or human costs and benefits.
When a nation is granted “most favored nation” status with the United States, it means the nation
is to be offerred the lowest tariff rates
In 1998, the foreign trade term most favored nation was changed to what?
normal trade relations
The North American Free Trade Agreement is
a trade treaty between the United States, Canada, and Mexico designed to lower and eliminate tariffs
Which of the following statements about the World Trade Organization is incorrect?
The United States dropped out of the World Trade Organization in 2004 over a disagreement about steel tariffs
Protests against the World Trade Organization (WTO) in recent years were prompted by
the perception that the WTO was not paying enough attention to developing countries
In 1997, the United States withdrew from
the Kyoto Protocol
Which of the following goals has traditionally been of lowest priority in U.S. foreign policy?
Most American presidents have been
domestic politicians who set out to make their place in history through domestic achievements
What eighteenth-century politician warned Americans against too much involvement with foreign nations?
In foreign policy, the Bush Doctrine refers to
Which official is not a major actor in American foreign policy?
Secretary of Veterans Affairs
Which of the following is the most important actor in the foreign policy establishment?
What is the chief task of the National Security Council?
to coordinate the differences among the executive’s key foreign policy makers
What is the main job of the director of national intelligence?
to collate and coordinate intelligence coming in from multiple sources and to report this to the president
Which president established preemption as the centerpiece of his foreign policy?
George W. Bush
In 2005, which of the following set off a new set of power struggles in Washington, D.C., over control of the intelligence community?
the appointment of a national intelligence “czar”
Which war was officially declared by Congress?
War of 1812
Why has Congress become a major foreign policy maker since World War II?
Congress is regularly called upon to approve financing of foreign policies
An agreement between the president and another country that has the force of a treaty but lacks congressional approval is called
an executive agreement
The nineteenth-century policy of ______ was based on the geographic distance of the United States from other countries.
In the sphere of foreign policy, which of the following is not a constitutional power possessed by Congress?
negotiating treaties on behalf of the United States
The most important task of the Senate in foreign policy is
reviewing and approving treaties
What is the main difference between a maker and a shaper of American foreign policy?
makers are those within government, while shapers are influential groups outside of official government
Which of the following is not an influential interest group affecting American foreign policy?
diplomats from foreign nations
Which of the following does not represent an important interest reflected through the actions of foreign policy interest groups?
domestic representation of foreign governments
Which interest group in the United States is more likely to depend on demonstrations and other nontraditional strategies of influence?
Which ethnic group has the reputation of having the greatest influence on American foreign policy?
What is the most critical resource the media has to influence foreign policy?
the speed and the scale with which the media can spread political communication
Why did embedded journalists in Iraq lead to controversy?
there was widespread suspiscion and fear that the journalists were being managed or manipulated by the government to provide favorable reporting of the war effort
In a crisis, which of the following has the greatest foreign policy influence?
What was the key to American security during the nineteenth century?
In regard to foreign policy, which of the following is not a problem that the media poses to the president?
the media is generally biased against international conflict, thus making it difficult for the president to engage U.S. troops abroad
Which of the following statements about who really makes American foreign policy is false?
the influence or power of the president varies depending on which particular country or group of countries the United States is dealing with
The representation of a government to other foreign governments is called
The main effort to change the foreign service into a fully professional diplomatic corps was
the Foreign Service Act of 1946
The first efforts by the United States to create a professional Foreign Service staff started
after World War I
President Clinton’s appointment of former senator George Mitchell to chair the Northern Ireland peace talks in 1998 is a good example of
the president’s avoidance of conventional diplomatic staff
Currently, the United Nations has approximately ______ member states.
The traditional American distrust of diplomacy has resulted in which situation?
Presidents often use military or political leaders outside the State Department during a crisis
Which of the following nations does not have a permanent seat on the UN Security Council?
According to the text, which of the following does not describe the United Nations?
is generally adversarial to the interest of the United States
Deterrence assumes the ______ of the U.S. response and the ______ of an adversary.
The International Monetary Fund
provides loans and facilitates a short-flow of money to countries in need
The UN Security Council has ______ permanent members and ______ elected members.
Foreign aid is an economic ______. Sanctions are an economic ______.
What was the Marshall Plan?
the economic recovery package of aid from the United States to Western Europe after World War II
When was NATO formed?
The North Atlantic Treaty Organization (NATO) is an example of
Which of the following is not a NATO member?
During the Persian Gulf War, allies of the United States paid for what percentage of the war’s costs?
Of which collective security organization is the United States not a member?
the warsaw pact
Which of the following describes the “realist” view of foreign policy?
Foreign policies should be guided by the national interest, even if from the outside the nation appears cold and ruthless.
Why did the United States fight wars in Korea and Vietnam?
policy makers believed if we didn’t fight, it would embolden the communists
The foreign policy ideals that Americans have historically espoused assert
that our foreign policies should have a higher purpose than the pursuit of our own interests and to use force only as a last resort.
The most noteworthy example of the policy of deterrence was
the arms race
When did the Cold War begin?
the 1940s, soon after World War II
All of the following are elements of a nation-state except that
it must be a member of the united nations
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