Elephant🐘
Tiger🐯
Lion🦁
Panda🐼
Giraffe🦒
100
Which agency works with the president to create the nation’s annual budget?
Office of Management and Budget
100
The worst condition that the economy can experience is known as
economic depression
100
Which economic policy consists of government decisions about how to influence the economy with taxing and spending.
Fiscal policy
100
Government assistance, usually in the form of financial assistance to individuals in need is called
welfare
100
President George W. Bush articulated a vision that advocated for people to take more responsibility for their own social welfare and allowed for the free market to play a greater role in social policy. What is the term for this collection of policy ideas?
Ownership society
200
What is the full name of AFDC?
Aid to Families with Dependent Children
200
Which major event resulted in the government taking on a much larger role in social policy, including the creation of Social Security?
Great Depression.
The crash of the stock market in 1929 and the massive depression that followed made it clear that private charity was insufficient to meet the social policy needs of America.
200
Federal housing policy primarily benefits which of the following groups?
1. the working class
2. the wealthy people
3. rural communities
4.racial minorities
2. the wealthy people
(the vast majority of tax expenditures are on things such as the mortgage interest tax deduction that benefit the wealthy.)
200
Who signed the Social Security Act into law?
President Franklin D. Roosevelt (FDR) signed the Social Security Act into law on August 14, 1935.
200
Complete the following statement.
Medicare is the health care program for ____ and is run by _________. Medicaid is the health care program for and is run by ________.
the elderly
the poor
the national government and the states
the national government only
Medicare is the health care program for the elderly and is run by the national government only. Medicaid is the health care program for the poor and is run by the national government and the states.
300
The states are important players in which of the following policy areas?
education
economic policy
welfare
health care
The states are important players in education, welfare, and health care.
300
What is the major initiative during President Lyndon B. Johnson's "Great Society" legislative agenda?
"War on Poverty"
300
Economists consider an unemployment rate of ________ percent to be full employment in the United States.
4.0–4.5 percent
300
The social policy-making process is a many-staged process. Place the following steps in the correct order from first in the policy-making process to last.
enactment
evaluation
implementation
agenda setting
problem recognition
problem recognition
agenda setting
enactment
implementation
evaluation
300
What is a major criticism of the Federal Reserve System?
a. Its policies undermine the legislative branch’s ability to effect budgetary policy.
b. It often acts in ways that are politically popular rather than in ways that are fiscally sound.
c. It is too concerned with keeping interest rates low when it should be more concerned about keeping inflation low.
d. It can make decisions that damage the economy, and voters have little recourse to hold its members accountable.
d. It can make decisions that damage the economy, and voters have little recourse to hold its members accountable.
400
If the value of the U.S. dollar declines from 1 dollar buying 0.9 euro to 1 dollar buying 0.7 euro, what happens to the trade deficit (all else being equal)?
The trade deficit shrinks.
In this case, imports drop because it becomes more expensive for the United States to buy European goods, and exports increase because it becomes cheaper for Europe to buy U.S. goods.
400
What was the result of the Budget and Accounting Act of 1921?
a. It created the Congressional Budget Office to produce independent economic analyses to assist Congress with the federal budget.
b. It restricted senators from using the filibuster on reconciliation bills.
c. It allowed the president to play a central role in the budget process.
d. It created the pay-as-you-go requirement.
c. It allowed the president to play a central role in the budget process.
400
What do most policy experts say about the future of the Social Security system?
a. The system’s collection and allocation of funds will be the same.
b. The amount of funds coming into the system will increase, because the number of people working is increasing dramatically.
c. The amount of money coming into the system will decrease, because the number of people retiring is increasing dramatically.
d. It will cease to exist, because the Social Security Act of 1935 is scheduled to expire in 2050.
c. The amount of money coming into the system will decrease, because the number of people retiring is increasing dramatically.
400
Identify the correct and incorrect statements about gross domestic product (GDP).
1. It is a traditional measure of a country's economic growth.
2. It usually goes up in recessions and down during good economic times.
3. It measures the strength of a country's education system and life expectancy.
4. It measures the value of a country's economic output.
Correct answers:
1. It is a traditional measure of a country's economic growth.
4.It measures the value of a country's economic output.
Incorrect Answer(s)
2. It usually goes up in recessions and down during good economic times.
3. It measures the strength of a country's education system and life expectancy.
400
What inflation rate do policy makers usually aim for?
2–3 percent