Ans Doc182


1. The six stages of interactions between political actors that lead to the emergence and resolution of public policy issues is called
the fiscal-policy process.
the monetary-policy process.
the budgetary process.
the public-policy process.
the governmental process.
2. Which of the following is a true statement regarding the Cold War?
It never became an actual shooting war between the United States and the Soviet Union.
It was an extension of containment policy.
It included U.S. support for governments being threatened by communism.
The global power structure was bipolar.
All of the answers are correct.
3. The broad goals of the United States in the global economy include
maintaining access to world energy and other vital resources.
sustaining an open system of trade that will promote domestic prosperity.
keeping the widening gap between the rich and poor countries from destabilizing the global economy.
All of the answers are correct.
None of the answers are correct
4. The primary reason that the existence of Social Security greatly lessens the demand for other forms of social welfare is that
Social Security is so popular that many people believe other welfare programs are neither necessary nor desirable.
the anticipation of Social Security benefits upon retirement leads many people who need public assistance to believe there is a better life ahead if they will only wait for it.
Social Security checks keep millions of elderly Americans with no other substantial source of income out of poverty.
the incentive of Social Security benefits upon retirement encourages individuals to work during their productive years, which reduces the need for other forms of social welfare, such as unemployment benefits.
None of the answers are correct.
5. Studies indicate that most unemployed American workers lost or left their jobs because
they are lazy.
of economic slowdowns and corporate restructuring.
they are undereducated for the work they are doing.
they wanted to be out of work in order to collect unemployment benefits.
they were not getting paid enough to cover their job-related expenses.
6. ________ was called the great leveler when it began in the early nineteenth century.
Social welfare
Public education
The federal government
The Internal Revenue Service
Social Security
7. The basis for containment policy was the assumption that
the territorial and ideological ambitions of an aggressor nation can only be blocked by determined opposition.
the spread of nuclear weapons is a danger to the world and must be stopped.
economic trade should be tailored to benefit the full industrialized nations through the formation of economic communities.
an arms race will inevitably escalate and therefore must be stopped through negotiations at an early stage.
terrorism can be contained within a few countries.
8. ________ led the communist takeover of China in 1949.
Mikhail Gorbachev
Jiang Zemin
Chiang Kai-Shek
Mao Zedong
Kim Jong Il
9. In 2002, President George W. Bush labeled ________ an axis of evil.
Cuba, China, and Vietnam
Ethiopia, Somalia, and Libya
Russia, China, and North Korea
Saudi Arabia, Syria, and Jordan
Iraq, Iran, and North Korea
10. Since the Cold War ended, U.S. policymakers’ concern with nuclear weaponry has shifted to
the possibility of a computer error in the U.S. or former Soviet weapons systems that could mistakenly launch a nuclear missile.
the spread of nuclear technology to irresponsible regimes and terrorists.
the use of a tactical nuclear weapon in ethnic conflicts in eastern Europe.
the possibility that, in the process of dismantling the U.S. and former Soviet arsenals, a nuclear warhead could be accidentally detonated.
the spread of nuclear technology to NATO forces.
11. Fiscal policy is a mechanism which the government employs to influence the economy. Fiscal policy is based on
the idea that a balanced budget is the key to a healthy economy.
the money supply.
the government’s taxing and spending decisions.
the importance of maintaining a 12-month (fiscal year) economic cycle.
the projections of the Federal Reserve Board.
12. Compared to tax policy in Western European democracies, tax policy in the United States shifts
a substantially greater portion of income from the rich to the poor.
a slightly greater portion of income from the rich to the poor.
about the same portion of income from the rich to the poor.
a smaller portion of income from the rich to the poor.
no income from the rich to the poor.
13. The tax cut signed by President George W. Bush in 2001 was premised largely on
demand-side economics.
supply-side economics.
fiscal policy.
monetary policy.
Keynesian economics.
14. The phrase that best describes the shift in America’s world position from the pre- to the post-World War II eras is
internationalism to isolationism.
isolationism to internationalism.
containment to isolationism.
interventionism to isolationism.
Interventionism to internationalism.
15. The American preference for equality of opportunity is consistent with Americans’
trust in the marketplace.
belief in liberty.
support for competition in the private sector.
belief in individualism.
All of the answers are correct.
16. Supply-side economics is based primarily on
stimulation of the business (supply) component.
government stimulation of consumer demands.
a repudiation of trickle-down theory.
increases in taxation.
increases in government regulation.
17. increases in government regulation.
18. The policy of deterrence is based on the idea that
when threatened, a nation should strike first so that its enemy is deprived of the option of a surprise attack.
economic links with another country will deter it from aggression.
modern warfare requires a flexible response policy.
the best protection against attack by an enemy is the capacity to retaliate with a devastating attack of one’s own.
preemptive strikes on one nation will persuade other nations that hostile actions directed at the United States will be punished.
19. About the position of the United States in world trade, it can be said that
the United States has never had a trade surplus.
in recent years, the United States has had trade surpluses more than deficits.
the United States has the most favorable balance of trade in the world.
the United States is a larger market than the European Union.
None of the answers are correct.
20. The era of New Social Regulation, which addressed issues such as the environment and worker safety, differed from the previous two eras of regulatory reform in that
the Republican party took the lead in placing additional regulations on business.
the aim was to regulate activities of firms of many types, not just those in a particular industry.
the regulatory agencies were established in a way that prevented the president from having a role in their operations.
the guiding principle was self-regulation-business was given wide leeway in deciding how it would comply with the new requirement.
the guiding principle was overregulation-business would be allowed almost no leeway in deciding how it would comply with new regulations.
21. Social insurance programs have high levels of public support because
of their self-financing feature.
they are based on an equality principle-all citizens are eligible for the benefits and all recipients receive the same level of benefits.
their cost is consistently below the spending level for public assistance programs.
of the necessity of increased taxes to fund them.
None of the answers are correct.
22. ________ described the Soviet Union as an evil empire.
Richard Nixon
Ronald Reagan
Bill Clinton
Jimmy Carter
Gerald Ford
23. ________ has the highest child poverty rate among the major industrialized nations.
The United States
24. Which of the following is true about the trade imbalance in the United States?
The United States has not had a trade surplus since 1975.
The United States has run deficits of more than $400 billion in recent years.
The United States has the worst trade imbalance of the top three economic centers.
All of the answers are correct.
None of the answers are correct.
25. In contrast with Medicare, the Medicaid program is
a public assistance program.
funded totally by the states.
funded by payroll taxes.
very popular with the general public.
designed to provide health coverage to all Americans who lack health insurance.
26. According to survey data, the form of assistance that Americans favor the most to help the poor is
education and job training.
government jobs through government programs.
government services for the poor.
public assistance.
27. Which of the following is true about the Iraqi War of 2003?
The war made the United States more popular in the Arab states.
The war made the United States more popular in Italy.
The war made the United States more popular in France.
The war made the United States more popular in Germany.
None of the answers are correct.
28. Which of the following statements is true concerning American public opinion on school vouchers?
Americans are divided in their opinions on school vouchers.
Americans strongly support school vouchers.
Americans strongly oppose school vouchers.
Most Americans have never heard of school vouchers.
Americans favor higher taxes to pay for vouchers.
29. Earth Day was the brainchild of Senator
Ted Kennedy.
Robert Byrd.
Mike Mansfield.
Ted Stevens.
Gaylord Nelson.
30. A major controversy surrounding the Federal Reserve’s role in economic policy is
the Fed’s political accountability.
whether the president should be able to veto the Fed’s decisions.
the issue of competence.
whether Congress should be able to reject the Fed’s decisions.
None of the answers are correct.
31. The tripolar economic world consists of
the United States, Canada, and Mexico.
Japan, China, and the United States.
the United States, Japan and China, and the European Union.
the United States, Russia, and Brazil.
North and South America, Europe, and Asia.
32. Which of the following is correct about environmental policy?
The national parks are subject to a dual-use policy of preservation and the extraction of timber, oil, and other natural resources.
The Environmental Protection Agency was elevated to cabinet status in 1998 by President Clinton and the Republican Congress.
Environmental regulation has done little to improve air and water quality.
Policymakers always give more consideration to environmental protection than to economic development when the two conflict.
None of the answers are correct.
33. The defining characteristic of a social insurance program is that
eligibility for the program’s benefits is confined to those who pay the special taxes that fund the program.
it is administered jointly by the national government and the states.
it is targeted at those who are most in need of welfare assistance.
it is administered through private insurance companies.
None of the answers are correct.
34. In regard to the Iraq conflict, the United States
has been able to count on its traditional allies for troops and money for the war.
has been able to count on its traditional allies for troops but not money.
has been able to count on its traditional allies for money but not troops.
has borne the very large share of military casualties and money costs of the war.
has had financial support from the Arab states although they have publicly stated their opposition to the war in Iraq.
35. The term “means test” refers to
the tax on a portion of the Social Security benefits of upper-income retirees.
whether an applicant’s income is low enough to qualify for public assistance.
the mandatory physical examination that Medicare and Medicaid applicants must undergo before they can receive benefits.
the mandatory psychological examination that Medicare and Medicaid applicants must undergo before they can receive benefits.
None of the answers are correct.
36. The key issue of regulatory policy is
the great amount of paperwork (red tape).
whether the costs imposed by regulation on business outweigh its potential benefits.
whether corporate and consumer interests are equally represented on regulatory commissions.
whether it has bipartisan support in Congress.
whether the commissioners’ opinion about a policy is unanimous.
37. he Social Security benefits that today’s retirees receive are funded primarily by
tax contributions they made in the past and which were put in a trust fund from which current payments are made.
payroll taxes on people who are currently working.
equal contributions from the national and state governments.
borrowed funds, which contribute to the national debt.
None of the answers are correct.
38. Of the following, which is likely the least criticized public assistance program?
Supplemental Security Income
Aid to Families with Dependent Children
Food Stamps
housing subsidies
39. ________ assists the president in creating the annual budgetary proposal to Congress.
The U.S. Treasury Department
The Federal Reserve Board
The Congressional Budget Office
The Council of Economic Advisers
The Office of Management and Budget
40. The foundation for U.S. policy toward the Soviet Union after World War II was
41. Which of the following is a true statement about the visibility of poverty in American society today?
Media coverage often focuses on the plight of the poor in America.
In polls each year, Americans identify the problem of poverty as one of the nation’s top three problems.
Poverty is less visible in the suburbs than in inner cities or rural areas.
Poverty has been virtually eliminated in the United States.
Poverty is most apparent in the case of elderly Americans.
42. Economic efficiency requires
that the free market not be regulated by government.
firms to fulfill as many of society’s needs by using as few of their resources as possible.
the economy to be organized around large firms.
economic transactions to be fair to each party.
economic transactions to be equal to each party.
43. Keynesian economics emphasizes ________ as a means of stimulating the economy in order to bring about the end of an economic recession or depression.
reduced taxes
increased government spending
decreased regulation
decreased inflation
increased taxes
44. Which of the following is true regarding income patterns in America?
The income of the average American family exceeds $100,000.
The top fifth of Americans in terms of income receive half of the total income in the nation.
The bottom fifth of Americans get only slightly less than 20 percent of total national income.
The United States has the lowest amount of income inequality of any industrialized democracy.
U.S. tax policy is designed to transfer a large proportion of the nation’s wealth from richer Americans to poorer ones.
45. The Fed is a preeminent example of ________ politics at work.
46. If the economic problem is low productivity and high unemployment, the fiscal policy action on the demand side would be to
increase taxes.
cut business taxes.
increase spending.
decrease spending.
None of the answers are correct.
47. The TANF program must operate within all the following guidelines except
states have no discretion in their handling of welfare cases.
eligibility for cash assistance is limited to no more than five years in a lifetime.
within two years, the heads of most families on welfare have to find work or risk the loss of benefits.
unmarried teenage mothers are qualified for welfare benefits only if they remain in school and live with a parent or legal guardian.
single mothers will lose a portion of their benefits if they refuse to cooperate in identifying the father of their children.
48. Which country produces the largest proportion of the world’s greenhouse gas emissions, which are a cause of global warming?
United States
49. President Franklin Roosevelt’s methods of restoring the economy’s health after the Depression were closest to the economic position of
Adam Smith.
John Maynard Keynes.
Karl Marx.
Alan Greenspan.
Milton Friedman.