Question 1

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 employers.
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.

Question 2

Define the term monetary policy,and describe three ways the Fed implements monetary policy.

Accepted Answer

Monetary policy is based on manipulation...

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 percent
B)  5 percent
C)  25 percent
D)  15 percent
E)  2 percent

Question 4

A major point of debate surrounding the Federal Reserve's role in economic policy is

Accepted Answer

A)  the Fed's political accountability.
B)  whether the president should be able to veto the Fed's decisions.
C)  the issue of competence.
D)  whether Congress should be able to reject the Fed's decisions.
E)  None of these answers is correct.

Question 5

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.

Question 6

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 1862

Question 7

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)  the 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.

Question 8

Advocates of deregulation are primarily concerned with

Accepted Answer

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

Question 9

Which country has the HIGHEST annual emissions of carbon dioxide?

Accepted Answer

A)  United States
B)  China
C)  Japan
D)  India
E)  Great Britain

Question 10

High levels of government spending or deep cuts in taxes result in a(n) ________ in which the federal government spends more in a year than it receives in tax and other revenues.

Accepted Answer

A)  trade deficit
B)  budget deficit
C)  national debt
D)  credit imbalance
E)  income disparity

Question 11

In The Wealth of Nations (1776) ,Adam Smith made all of the following arguments for laissez-faire capitalism,EXCEPT

Accepted Answer

A)  that the desire for profit is the invisible hand that guides a capitalist system.
B)  that the government should not be allowed any role whatsoever in the economy.
C)  that private firms should be left alone to make their production and distribution decisions.
D)  that the government should regulate banking,currency,and contracts.
E)  that certain areas of the economy were better run by government agencies.

Question 12

One focus of the Progressive Era of government regulation was

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 sale of unsafe food and drugs.

Question 13

Describe Adam Smith's laissez-faire model of economics.

Accepted Answer

Laissez-faire capitalism holds that priv...

Question 14

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)  These countries have been about equal in their efforts to reduce greenhouse gas emissions.

Question 15

The Federal Reserve controls the money supply through all of the following actions EXCEPT

Accepted Answer

A)  raising the cash reserve that member banks are required to deposit with the Federal Reserve.
B)  raising the interest rate that member banks are charged when they borrow from the Federal Reserve.
C)  lowering the cash reserve that member banks are required to deposit with the Federal Reserve.
D)  lowering the interest rate that member banks are charged when they borrow from the Federal Reserve.
E)  lowering the tax rate on individuals.

Question 16

Which of the following is correct about environmental policy?

Accepted Answer

A)  The national forests are protected from the exploitive "dual use policy."
B)  The Environmental Protection Agency was elevated to cabinet status in 1998 by President Clinton and the Republican Congress.
C)  Environmental regulation has led to dramatic improvements in 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.

Question 17

The Fed is directed by a board of governors whose seven members

Accepted Answer

A)  serve for 14 years.
B)  hold office during good behavior,in essence a lifetime appointment.
C)  serve for 4 years.
D)  retain their seat as long as the president who nominated them is in office.
E)  serve for no more than three consecutive 6-year terms.

Question 18

The tax cuts pushed by the Reagan and Bush administrations were premised largely on

Accepted Answer

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

Question 19

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.

Question 20

Which of the following statements is true?

Accepted Answer

A)  The national debt was eliminated in 1998.
B)  The chair of the Fed creates the president's budget on an annual basis.
C)  Keynes advocated government spending to counteract an economic downturn.
D)  The highest budget deficit in U.S.history was $59 billion.
E)  The Congressional Budget Office creates the president's budget on an annual basis.

Exam 15: Economic and Environmental Policy: Contributing to Prosperity

Define the term monetary policy,and describe three ways the Fed implements monetary policy.

Correct AnswerverifiedMonetary policy is based on manipulation...View AnswerShow Answer

Which country has the HIGHEST annual emissions of carbon dioxide?

Correct AnswerverifiedShow Answer

Monetary policy differs from fiscal policy in that

Correct AnswerverifiedShow Answer

The Fed is directed by a board of governors whose seven members

Correct AnswerverifiedShow Answer

Advocates of deregulation are primarily concerned with

Correct AnswerverifiedShow Answer

The ________ established minimum wages.

Correct AnswerverifiedShow Answer

The tax cuts pushed by the Reagan and Bush administrations were premised largely on

Correct AnswerverifiedShow Answer

Describe Adam Smith's laissez-faire model of economics.

Correct AnswerverifiedLaissez-faire capitalism holds that priv...View AnswerShow Answer

High levels of government spending or deep cuts in taxes result in a(n) ________ in which the federal government spends more in a year than it receives in tax and other revenues.

Correct AnswerverifiedShow Answer

A major point of debate surrounding the Federal Reserve's role in economic policy is

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

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

Correct AnswerverifiedShow Answer

The Federal Reserve controls the money supply through all of the following actions EXCEPT

Correct AnswerverifiedShow Answer

Which of the following statements is true?

Correct AnswerverifiedShow Answer

Which of the following is correct about environmental policy?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The term externalities refers to

Correct AnswerverifiedShow Answer

One focus of the Progressive Era of government regulation was

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

In The Wealth of Nations (1776) ,Adam Smith made all of the following arguments for laissez-faire capitalism,EXCEPT

Correct AnswerverifiedShow Answer

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Monetary policy is based on manipulation...
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Laissez-faire capitalism holds that priv...
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