Question 1

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 2

Which of the following is correct about environmental policy?

Accepted Answer

A)  The national forests 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) A) and E)
G) C) and E)

Question 3

Supply-side economics,as implemented by President George W.Bush's administration,involved

Accepted Answer

A)  the supply component of the supply-demand equation.
B)  stressing the importance of tax cuts for businesses.
C)  stressing the importance of tax cuts for the wealthy.
D)  an increase in the size of the national debt.
E)  All of these answers are correct.F) C) and D)
G) A) and C)

Question 4

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

Accepted Answer

Monetary policy is based on manipulation...

Question 5

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) A) and D)
G) B) and D)

Question 6

Government benefits for business include all of the following EXCEPT

Accepted Answer

A)  low-interest loans and government-guaranteed loans.
B)  corporate tax breaks.
C)  a national transportation system.
D)  minimum-wage laws.
E)  a national education system.F) A) and B)
G) A) and C)

Question 7

Farm subsidies have traditionally had strong support in Congress,particularly from

Accepted Answer

A)  representatives from urban districts.
B)  rural-state senators and representatives.
C)  senators from urban districts.
D)  the Speaker of the House and Senate president pro tempore.
E)  Democratic senators and representatives.F) A) and E)
G) D) and E)

Question 8

The Federal Reserve plays a large part in establishing ________ policy.

Accepted Answer

A)  monetary
B)  military
C)  fiscal
D)  budgetary
E)  securityF) A) and B)
G) None of the above

Question 9

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) A) and B)
G) A) and C)

Question 10

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) C) and D)
G) A) and D)

Question 11

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 raising 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) B) and C)

Question 12

What happened after Lehman brothers went out of business in September of 2008?

Accepted Answer

A)  The stock market rose dramatically.
B)  The stock market rose slightly.
C)  The stock market was essentially unchanged.
D)  The stock market dropped slightly.
E)  The stock market dropped dramatically.F) A) and B)
G) B) and D)

Question 13

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 B)
G) A) and C)

Question 14

The $787 billion stimulus bill passed by Congress in 2009

Accepted Answer

A)  illustrated classic supply-side principles.
B)  focused primarily on lowering tax rates for businesses.
C)  was passed with strong bipartisan support.
D)  had almost no Republican support.
E)  was not necessary according to most Democratic-leaning economists.F) C) and D)
G) A) and D)

Question 15

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

Question 16

Which country has the HIGHEST annual per capita emissions of carbon dioxide?

Accepted Answer

A)  United States
B)  Russia
C)  Japan
D)  France
E)  Great BritainF) A) and B)
G) B) and D)

Question 17

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

Accepted Answer

Laissez-faire capitalism holds that priv...

Question 18

Regarding the Kyoto agreement and greenhouse gas emissions,which of the following is true?

Accepted Answer

A)  The United States is the largest single producer of greenhouse emissions in the world,on a per-capita basis.
B)  President George W.Bush rejected the agreement.
C)  It was a multinational effort to reduce carbon emissions.
D)  The burden of addressing the global warming problem will fall unevenly on nations.
E)  All of these answers are correct.F) A) and B)
G) D) and E)

Question 19

Which president's use of government policy as economic stimulus ushered in the modern era of U.S.government fiscal policy?

Accepted Answer

A)  Thomas Jefferson
B)  Franklin Roosevelt
C)  Lyndon Johnson
D)  Woodrow Wilson
E)  William ClintonF) B) and C)
G) C) and E)

Question 20

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) B) and D)
G) C) and D)

Exam 15: Economic and Environmental Policy: Contributing to Prosperity

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

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

The $787 billion stimulus bill passed by Congress in 2009

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

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

Correct AnswerverifiedShow Answer

Which of the following is correct about environmental policy?

Correct AnswerverifiedShow Answer

Which president's use of government policy as economic stimulus ushered in the modern era of U.S.government fiscal policy?

Correct AnswerverifiedShow Answer

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

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

The Federal Reserve plays a large part in establishing ________ policy.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which country has the HIGHEST annual per capita emissions of carbon dioxide?

Correct AnswerverifiedShow Answer

Supply-side economics,as implemented by President George W.Bush's administration,involved

Correct AnswerverifiedShow Answer

When the Fed was created in 1913,

Correct AnswerverifiedShow Answer

Government benefits for business include all of the following EXCEPT

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Regarding the Kyoto agreement and greenhouse gas emissions,which of the following is true?

Correct AnswerverifiedShow Answer

What happened after Lehman brothers went out of business in September of 2008?

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

Farm subsidies have traditionally had strong support in Congress,particularly from

Correct AnswerverifiedShow Answer

Correct Answer
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Laissez-faire capitalism holds that priv...
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Monetary policy is based on manipulation...
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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An economy is a system of production and...
View Answer

Correct Answer
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