Question 1

The Federal Reserve System

Accepted Answer

A)  was created in 1933.
B)  is run by a congressional committee.
C)  regulates only national banks.
D)  was created specifically to conduct fiscal policy.
E)  None of these answers is correct.F) B) and D)
G) All of the above

Question 2

Which of the following is true of the climate change issue?

Accepted Answer

A)  Scientists theorize that the use of carbon-based fuels is most responsible for temperature rises.
B)  Most scientists doubt the evidence behind the theory that humans are helping to cause temperature increases.
C)  U) S.policymakers are relatively uniform in their desire to avoid costly measures to reduce carbon emissions.
D)  Most Western countries have not taken major steps to reduce carbon emissions.
E)  U) S.participation in the Paris accord is the only major initiative it currently undertakes to deal with climate change.F) C) and D)
G) A) and B)

Question 3

A ruling by the Food and Drug Administration that a drug is dangerous to use and therefore cannot be marketed is an example of regulation for the purpose of

Accepted Answer

A)  supply-side safety.
B)  demand-side safety.
C)  equity.
D)  efficiency.
E)  profit.F) B) and E)
G) B) and C)

Question 4

The Progressive Era of government regulation focused on

Accepted Answer

A)  strengthening consumer protection by preventing credit agencies from gouging individuals with high levels of debt.
B)  bolstering worker safety by increasing the power of unions and forcing better safety practices on businesses.
C)  increasing environmental protection and strengthening the EPA.
D)  regulating troubled economic sectors,such as banking.
E)  stopping corrupt business practices,such as the selling of unsafe food and drugs.F) B) and E)
G) C) and D)

Question 5

During what has become known as the Great Recession,the Fed began to purchase the assets of member banks.This new monetary control mechanism used by the Fed was known as

Accepted Answer

A)  subprime borrowing.
B)  the Greenspan Plan.
C)  quantitative easing.
D)  hyper inflation.
E)  too big to fail.F) A) and D)
G) All of the above

Question 6

The main purpose of the Troubled Asset Relief Program was to

Accepted Answer

A)  quickly provide jobs to the unemployed.
B)  shore up shaky financial institutions.
C)  lower the rate of inflation.
D)  demonstrate that only the Fed controlled economic policy.
E)  help out the European economy and boost demand for American exports.F) B) and C)
G) A) and C)

Question 7

Monetary policy differs from fiscal policy in that

Accepted Answer

A)  it has to be exercised by the legislature.
B)  the policy goals are very different.
C)  it is a slower process than fiscal policy.
D)  it can be implemented more quickly than fiscal policy.
E)  None of these answers is correct.F) A) and B)
G) C) and E)

Question 8

Define the term fiscal policy and explain how fiscal policy can be used in response to economic conditions.

Accepted Answer

The government's efforts to maintain a s...

Question 9

The total cumulative amount the federal government owes to its creditors is known as

Accepted Answer

A)  a trade deficit.
B)  a budget deficit.
C)  the national debt.
D)  a credit imbalance.
E)  income disparity.F) A) and E)
G) A) and C)

Question 10

Which of the following statements best describes the relationship today between government and the economy in the United States?

Accepted Answer

A)  The economy is largely self-regulating.
B)  The government subsidizes economic interests but otherwise leaves them to operate as they please.
C)  The government is the driving force in the U.S.economy; business has a secondary role.
D)  The government has an important role in regulating and maintaining the U.S.economy.
E)  The government owns most of the means of production in the United States.F) B) and E)
G) A) and E)

Question 11

The ________ established minimum wages.

Accepted Answer

A)  Securities and Exchange Act of 1934
B)  Banking Act of 1934
C)  Airlines Deregulation Act of 1977
D)  Fair Labor Standards Act of 1938
E)  Homestead Act of 1862F) D) and E)
G) B) and D)

Question 12

Explain the difference between economic efficiency and economic equity as principles that justify government regulation of the economy.

Accepted Answer

An economy is a system of production and...

Question 13

Of the following countries,which has done the least to reduce greenhouse gas emissions?

Accepted Answer

A)  Germany
B)  France
C)  Great Britain
D)  United States
E)  All of these countries have been about equal in their efforts to reduce greenhouse gas emissions.F) C) and D)
G) D) and E)

Question 14

When was the last time the U.S.government had a balanced budget?

Accepted Answer

A)  1970s
B)  1980s
C)  1990s
D)  2000s
E)  None of these answers is correct.F) A) and E)
G) A) and D)

Question 15

Which of the following is correct about environmental policy?

Accepted Answer

A)  Environmental regulation has not markedly improved the air and water conditions since its initial establishment and growth.
B)  The Environmental Protection Agency was proposed by a Republican president and enacted by a Democratic Congress.
C)  Conservation and deforestation is the highest-profile environmental issue today in the United States.
D)  The EPA has the authority to levy fines and sanctions on businesses.
E)  None of these answers is correct.F) C) and E)
G) A) and E)

Question 16

Which of the following has been a major impediment to any U.S.action to reduce its carbon emissions as a means of reducing climate change?

Accepted Answer

A)  the continual slowing down of the U.S.economy
B)  the lack of power in the presidency to affect policy change on the issue
C)  the lack of any regulatory agencies that might be able to enforce carbon reduction measures
D)  the overwhelming disinterest of the American people
E)  the fragmented nature of the U.S.political systemF) A) and B)
G) A) and C)

Question 17

Passed in 2010,the Dodd-Frank Wall Street Reform and Consumer Act

Accepted Answer

A)  loosens restrictions on large financial institutions considered "too big to fail."
B)  allowed low interest rates and small down payments for first-time home buyers and small business entrepreneurs.
C)  empowers government to more closely oversee financial activities.
D)  sought to promote environmental protection,consumer protection,and worker safety.
E)  required warning labels on all "hazardous" consumer goods,such as cigarettes.F) B) and D)
G) B) and E)

Question 18

________ wrote Silent Spring in 1962.

Accepted Answer

A)  Al Gore
B)  George W.Bush
C)  Greenpeace
D)  Rachel Carson
E)  The Sierra ClubF) None of the above
G) A) and B)

Question 19

Economic efficiency requires

Accepted Answer

A)  that the free market not be regulated by government.
B)  that the output of goods and services is the highest possible given the amount of input used to produce them.
C)  the economy to be organized around large firms.
D)  economic transactions to be fair to each party.
E)  economic transactions to be equal to each party.F) A) and B)
G) B) and E)

Question 20

Fiscal policy is a mechanism the government employs to influence the economy.Fiscal policy is based on

Accepted Answer

A)  the idea that a balanced budget is the key to a healthy economy.
B)  the money supply.
C)  the government's taxing and spending decisions.
D)  the importance of maintaining a 12-month (fiscal year) economic cycle.
E)  the projections of the Federal Reserve Board.F) D) and E)
G) B) and C)

Exam 15: Economic and Environmental Policy: Contributing to Prosperity

Which of the following statements best describes the relationship today between government and the economy in the United States?

Correct AnswerverifiedShow Answer

Which of the following has been a major impediment to any U.S.action to reduce its carbon emissions as a means of reducing climate change?

Correct AnswerverifiedShow Answer

The ________ established minimum wages.

Correct AnswerverifiedShow Answer

Which of the following is correct about environmental policy?

Correct AnswerverifiedShow Answer

When was the last time the U.S.government had a balanced budget?

Correct AnswerverifiedShow Answer

________ wrote Silent Spring in 1962.

Correct AnswerverifiedShow Answer

Which of the following is true of the climate change issue?

Correct AnswerverifiedShow Answer

Fiscal policy is a mechanism the government employs to influence the economy.Fiscal policy is based on

Correct AnswerverifiedShow Answer

During what has become known as the Great Recession,the Fed began to purchase the assets of member banks.This new monetary control mechanism used by the Fed was known as

Correct AnswerverifiedShow Answer

Monetary policy differs from fiscal policy in that

Correct AnswerverifiedShow Answer

Economic efficiency requires

Correct AnswerverifiedShow Answer

Explain the difference between economic efficiency and economic equity as principles that justify government regulation of the economy.

Correct AnswerverifiedAn economy is a system of production and...View AnswerShow Answer

The main purpose of the Troubled Asset Relief Program was to

Correct AnswerverifiedShow Answer

Of the following countries,which has done the least to reduce greenhouse gas emissions?

Correct AnswerverifiedShow Answer

A ruling by the Food and Drug Administration that a drug is dangerous to use and therefore cannot be marketed is an example of regulation for the purpose of

Correct AnswerverifiedShow Answer

Passed in 2010,the Dodd-Frank Wall Street Reform and Consumer Act

Correct AnswerverifiedShow Answer

The Federal Reserve System

Correct AnswerverifiedShow Answer

Define the term fiscal policy and explain how fiscal policy can be used in response to economic conditions.

Correct AnswerverifiedThe government's efforts to maintain a s...View AnswerShow Answer

The Progressive Era of government regulation focused on

Correct AnswerverifiedShow Answer

The total cumulative amount the federal government owes to its creditors is known as

Correct AnswerverifiedShow Answer

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An economy is a system of production and...
View Answer

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The government's efforts to maintain a s...
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