Question 1

Which of the following is correct about environmental policy?

Accepted Answer

A)  The national parks are subject to a dual use policy of preservation,recreation,and exploitation of the rich natural resources.
B)  The Environmental Protection Agency was elevated to cabinet status in 1998 by President Clinton and the Republican Congress.
C)  Environmental regulation has done little to improve air and water quality.
D)  Policymakers always give more consideration to environmental protection than to economic development when the two conflict.
E)  None of these answers is correct.F) B) and D)
G) D) and E)

Question 2

The tax cuts pushed by President George W.Bush while in office were premised largely on

Accepted Answer

A)  demand-side economics.
B)  supply-side economics.
C)  fiscal policy.
D)  monetary policy.
E)  Keynesian economics.F) A) and C)
G) A) and E)

Question 3

About what percentage of the annual federal budget is accounted for by the interest paid on the national debt?

Accepted Answer

A)  50%
B)  5%
C)  25%
D)  15%
E)  2%F) A) and B)
G) B) and E)

Question 4

Members of the Federal Reserve Board

Accepted Answer

A)  serve for variable terms and are exposed to high levels of political pressure.
B)  have no power to refuse congressional requests for information.
C)  are appointed by the president and can be removed by the Senate.
D)  are appointed by Congress and can be removed by Congress.
E)  are appointed by the president and are not subject to removal.F) C) and D)
G) A) and B)

Question 5

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) None of the above
G) D) and E)

Question 6

Government support for agriculture in the form of price supports and income subsidies is designed primarily to

Accepted Answer

A)  increase farm production in order to meet the nation's food needs.
B)  stabilize farm income,which would otherwise fluctuate greatly due to market and weather conditions.
C)  promote farm conservation so as to preserve the productive capacity of U.S.agriculture.
D)  encourage rural development.
E)  encourage urban development.F) A) and D)
G) B) and D)

Question 7

The ________ established minimum wages and constraints on the use of child labor.

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) B) and C)
G) C) and E)

Question 8

The Tennessee Valley Authority is

Accepted Answer

A)  an electricity industry owned by the United States.
B)  a private industry regulated by the United States.
C)  a private electricity industry exempt from government regulation.
D)  a private environmental organization that receives federal funding.
E)  a private environmental organization with power to regulate industry.F) A) and E)
G) B) and C)

Question 9

Supply-side economics is based primarily on

Accepted Answer

A)  stimulation of the business (supply) component.
B)  government stimulation of consumer demands.
C)  a repudiation of trickle-down theory.
D)  increases in taxation.
E)  increases in government regulation.F) None of the above
G) B) and E)

Question 10

What was a major change brought about by the National Labor Relations Act of 1935?

Accepted Answer

A)  It established the national minimum wage.
B)  It broke up business monopolies in order to give workers more choice in employer.
C)  Workers were given the right to bargain collectively.
D)  It eliminated the ability of companies to bargain directly with unions.
E)  It reduced the ability of workers to go on strike indefinitely.F) C) and D)
G) D) and E)

Question 11

Judged in the context of the full range of public policies,the government in the United States has been

Accepted Answer

A)  equally hostile to the interests of business and labor.
B)  equally supportive of the interests of business and labor.
C)  substantially more supportive of business than labor.
D)  substantially more supportive of labor than business.
E)  substantially more supportive of left-wing radicals than conservatives.F) None of the above
G) A) and C)

Question 12

In John Maynard Keynes's demand-side economic theory,an economic recession can be shortened through

Accepted Answer

A)  government spending programs.
B)  the natural workings of the free-market system.
C)  a lowering of tariffs in the global economy.
D)  a determination on the part of government not to spend any more than it receives in taxes.
E)  tax cuts for the wealthy.F) C) and D)
G) A) and D)

Question 13

The term externalities refers to

Accepted Answer

A)  regulations imposed on a firm by government.
B)  a nation that is a trading partner of another nation.
C)  unpaid costs of production that are incurred by society.
D)  tariffs imposed on American goods exported to other countries.
E)  None of these answers is correct.F) A) and E)
G) B) and E)

Question 14

The Superfund program is designed to

Accepted Answer

A)  bail out financial institutions that are considered too large to collapse.
B)  provide domestic farmers with subsidies in order to remain competitive with international farming.
C)  provide funds for cleaning up badly contaminated and polluted sites.
D)  provide the president with emergency funds to deal with major natural disasters.
E)  None of these answers is correct.F) C) and D)
G) A) and D)

Question 15

The creation of the Food and Drug Administration and the passage of the Securities and Exchange Act were intended to

Accepted Answer

A)  promote equity in the economy.
B)  eliminate the problem of externalities in the economy.
C)  destroy the legal foundation of the business trust.
D)  promote efficiency in the economy.
E)  None of these answers is correct.F) All of the above
G) B) and E)

Question 16

The highest rate of inflation (13 percent) since World War II occurred in ________.

Accepted Answer

A)  1955
B)  1963
C)  1979
D)  1991
E)  2002F) None of the above
G) B) and D)

Question 17

When the Fed was created in 1913,

Accepted Answer

A)  it had no role in the management of the nation's economy.
B)  it was restricted to providing emergency loans to financial institutions.
C)  it adhered to a strictly supply-side policy focus.
D)  its primary economic management tool was to reduce inflation by restricting the money supply.
E)  it was far more likely to increase the money supply by lowering interest rates than to restrict it by raising them.F) A) and E)
G) C) and E)

Question 18

What has been the preferred strategy of U.S.lawmakers for combating the problem of global warming?

Accepted Answer

A)  reducing regulation on businesses to allow more private-sector solutions to develop creatively
B)  raising interest rates to slow down the economy
C)  business-tradable carbon tax credits
D)  reduction of carbon emissions
E)  alternative energy sources and energy conservationF) B) and D)
G) A) and E)

Question 19

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) D) and E)
G) B) and E)

Question 20

Advocates of deregulation are primarily concerned with

Accepted Answer

A)  efficiency.
B)  equity.
C)  externalities.
D)  public safety.
E)  political expediency.F) B) and E)
G) A) and E)

Exam 15: Economic and Environmental Policy: Contributing to Prosperity

The creation of the Food and Drug Administration and the passage of the Securities and Exchange Act were intended to

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Advocates of deregulation are primarily concerned with

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Judged in the context of the full range of public policies,the government in the United States has been

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The Superfund program is designed to

Correct AnswerverifiedShow Answer

Government support for agriculture in the form of price supports and income subsidies is designed primarily to

Correct AnswerverifiedShow Answer

The tax cuts pushed by President George W.Bush while in office were premised largely on

Correct AnswerverifiedShow Answer

In John Maynard Keynes's demand-side economic theory,an economic recession can be shortened through

Correct AnswerverifiedShow Answer

What was a major change brought about by the National Labor Relations Act of 1935?

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

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What has been the preferred strategy of U.S.lawmakers for combating the problem of global warming?

Correct AnswerverifiedShow Answer

When the Fed was created in 1913,

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Which of the following is correct about environmental policy?

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The Tennessee Valley Authority is

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Supply-side economics is based primarily on

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Monetary policy differs from fiscal policy in that

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The highest rate of inflation (13 percent) since World War II occurred in ________.

Correct AnswerverifiedShow Answer

About what percentage of the annual federal budget is accounted for by the interest paid on the national debt?

Correct AnswerverifiedShow Answer

The ________ established minimum wages and constraints on the use of child labor.

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Members of the Federal Reserve Board

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The term externalities refers to

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