Chapter 16 Post Test

A  public investment, innovation, and a productive workforce

B  public investment, government investment, and financial stability

C  foreign investment, productive workforce, and economic regulation

D  domestic investment, foreign investment, and government regulation

A  Distributive

B  Regressive

C  Redistributive

D  Progressive

A  has grown dramatically since 1960.

B  decreased between 1960 and 1990 but has increased dramatically since 1990.

C  increased between 1960 and 1990 but has decreased dramatically since 1990.

D  has remained constant since 1960.

A  The revenue that is raised from it tends to be spent on progressive goals.

B  The income tax charges a flat tax rate regardless of income, which is more equitable.

C  The more income people make, the lower a tax rate they have to pay on that income.

D  The more income people make, the higher a tax rate they have to pay on that income.

A  fiscalism

B  Keynesianism

C  laissez-faire capitalism

D  supply-side economics

A  A majority of Americans regularly say they would prefer a smaller government with fewer services, but polls also reveal very little support for cutting any specific government programs.

B  A majority of Americans regularly say they would prefer a larger government with more services, and polls also reveal strong support for increasing spending on nearly every government program.

C  A majority of Americans regularly say they would prefer a smaller government with fewer services, and polls also reveal strong support for cutting nearly every government program.

D  A majority of Americans regularly say they would prefer a larger government with more services, but polls also reveal very little support for increasing spending on any specific government program.

A  Keynesianism.

B  laissez-faire capitalism.

C  socialism.

D  supply-side economics.

A  Clinton in 1998

B  George W. Bush in 2009

C  Trump in 2017

D  Obama in 2015

A  guarantee that a worker does not have to belong to a union or pay union dues as a condition of employment.

B  forbid employment discrimination on the basis of race, ethnicity, and gender.

C  limit the amount of payroll taxes that can be taken out of the checks of full-time employees to a certain percentage of their income.

D  provide subsidies to companies who hire previously unemployed workers.

A  only to what the government spends on Social Security.

B  to everything on which the government spends money outside of defense.

C  only to what the government spends on Medicare.

D  to everything on which the government spends money outside of defense and mandatory programs such as Social Security and Medicare.

A  government can rectify a falling economy by regulating the money supply.

B  government can pull an economy out of a recession by stimulating demand and creating a cycle of increased production and jobs.

C  government regulations during economic depressions must be lifted because they destroy the already-slim profit margin.

D  the economy of size shows that monopolies are the most efficient way to distribute goods throughout a national marketplace.

A  environmental groups.

B  business organizations.

C  foreign nations.

D  labor unions.

A  Keynesianism.

B  laissez-faire economics.

C  monetarism.

D  social democracy.

A  Richard Nixon

B  John Kennedy

C  Lyndon Johnson

D  Ronald Reagan

A  contracting.

B  regressive taxation.

C  free trade.

D  antitrust policy.

A  Deregulation tends to occur during times of economic recession and depression.

B  The country has long been opposed to government regulation, with very few new regulations being put in place since the Civil War.

C  The trend since the 1980s has been toward the federal government deregulating many different areas of the economy.

D  Democrats favor deregulation more than Republican do.

A  Mandatory programs, then discretionary programs, then net interest on the debt.

B  Discretionary programs, then mandatory programs, then net interest on the debt.

C  Net interest on the debt, then discretionary programs, then mandatory programs.

D  Net interest on the debt, then mandatory programs, then discretionary programs.

A  First introduced in the early 1900s, it became a tax that most households paid during World War II. It has become less progressive in the last 40 years than it was during the early years of its use.

B  The income tax was introduced during the Civil War and entered widespread use shortly thereafter. It used to be much more regressive, though recent tax law changes have made it more progressive in its effects.

C  Income tax rates have generally been stable throughout the country’s history, only changing by a percentage point here or there.

D  Introduced as part of the Bill of Rights, the income tax has long been the foundation of the American federal government’s revenues, though it is less used today than it once was.

A  They became less progressive until the 2017 tax cuts, at which point the trend began to reverse.

B  They have become more progressive over time.

C  They have become less progressive over time.

D  They became more progressive until the 2017 tax cuts, at which point the trend began to reverse.

A  tax expenditure.

B  earmark.

C  earned income tax credit.

D  subsidy.

A  control mandatory spending.

B  close tax loopholes.

C  regulate monopolies.

D  control discretionary spending.

A  capital gains

B  progressive

C  regressive

D  transgressive

A    

B  regressive

C  capital gains

D  transgressive

E  progressive

A  value-added tax.

B  tax expenditure.

C  tariff.

D  capital gains tax.

A  5%

B  30%

C  60%

D  99%

A  percentage of federal spending that is made up of “uncontrollables,” budget items that cannot be controlled through the regular budget process.

B  congressionally determined limit on the amount of national debt that can be issued by the U.S. Treasury.

C  payment rate on the national debt.

D  interest rate on loans between banks.

A  Article I, Section 8.

B  Article I, Section 4.

C  the Tenth Amendment.

D  Article II, Section 4.

A  American has consistently driven its economic growth from the agricultural sector, which remains the largest factor in the country’s economy.

B  Much of America’s growth in the 1800s was driven by its abundant natural resources, but today it is driven much more by America’s success in the technology fields.

C  In the nation’s beginning it was a service-driven economy, though in the twentieth century and especially in the twenty-first, it has relied more on industry to drive growth.

D  America has long been a hub of tech-driven productivity, though that has shifted since the 1980s into more of a manufacturing-driven economy.

A  promoting stable markets

B  promoting international balance of trade

C  promoting economic interdependence

D  ensuring full employment

A  supply-side economics

B  public goods

C  public policies

D  redistributive actions

A  stable.

B  among the most violent in the world.

C  defined by peaceful negotiations.

D  dependent on labor unions for stability.

A  encouraging investment in businesses abroad

B  stimulating economic growth

C  reducing imports from foreign economies

D  promoting economic self-reliance

A  prohibit workers from forming unions.

B  oversee union elections and collective bargaining between labor and industry.

C  establish a national minimum hourly wage.

D  limit the amount of money labor unions and corporations could donate to political parties.

A  inflation.

B  deflation.

C  indexing.

D  opportunity costs.

A  consumer price index.

B  monetary fund.

C  gross domestic product.

D  inflation index.

A  While unions represent a higher share of the labor force, they have less power and influence than they used to.

B  Unions represent a smaller share of the labor force and have less power and influence than they used to.

C  While unions represent a lower share of the labor force, they have more power and influence than they used to.

D  Unions are more powerful today than they had been in the past.

A  1980s.

B  1990s.

C  1970s.

D  1950s.

A  the Democratic Party’s strategy of raising taxes on wealthy individuals in order to pay for social programs that benefit those at the lower end of the income distribution.

B  the Republican Party’s strategy of reducing taxes and increasing deficits in order to win support for federal spending cuts.

C  the federal government’s strategy of taking power away from state governments by imposing an increasingly large number of regulations on their behavior.

D  Congress’s strategy of slowly reducing budget appropriations for unpopular programs over the course of many years rather than ending them immediately.

A  Keynesian

B  supply-side economic

C  neo-Malthusian

D  laissez-faire

A  reducing the marginal rate of taxation will promote higher levels of work and investment.

B  the best method of producing high levels of economic growth is to engage in high levels of government spending.

C  the government should impose heavy tariffs on imported goods in order to protect domestic suppliers.

D  the government’s role in the economy should be limited to regulating the money supply.

A  trickle-down economics

B  rational expectations

C  the Prisoner’s Dilemma

D  the invisible hand

E    

A  While it reduces the prices of goods for consumers, it imposes costs on workers in the form of lost jobs or reduced wages.

B  It has long been championed by the Democratic Party, but the Republican Party has always opposed it.

C  Because the government loses revenue from conducting free trade, it must make that revenue up through the imposition of higher income taxes.

D  It benefits only those who export goods, while punishing those who import them.

E    

A  progressive policy.

B  deregulation.

C  monetary policy.

D  antitrust policy.

A  during election years.

B  during good economic periods, when inflation is a concern.

C  during economic downturns and recessions.

D  during times of war.

E    

A  spends; brings in in revenue

B  regulates; redistributes

C  brings in in revenue; spends

D  redistributes; regulates

A  regulatory policy; redistributive policy

B  monetary policy; fiscal policy

C  fiscal policy; monetary policy

D  redistributive policy; regulatory policy

A  facilitates exchanges of credit and uses monetary policies to fight inflation and deflation.

B  requires companies to inform buyers of investment risks and protects investors against fraud.

C  manages the federal government’s antiterrorism strategy, provides border security, and oversees immigration and customs enforcement.

D  provides independent analyses of budgetary and economic issues to support the congressional budget process.

A  defense spending

B  farm price supports

C  Medicare

D  both farm price supports and Medicare

A  progressive; progressive

B  progressive; regressive

C  regressive; progressive

D  regressive; regressive

A  Redistributive; tariffs

B  Fiscal; loopholes

C  Monetary; interest groups

D  Antitrust; monopolies

A  aggressively lowering interest rates.

B  aggressively raising interest rates.

C  keeping interest rates at the same level.

D  passing a budget with larger individual and corporate tax cuts.

A  Federal Reserve Board

B  Federal Deposit Insurance Corporation

C  Office of Management and Budget

D  U.S. Department of Treasury

A  Immigrant labor takes jobs that would otherwise go to Americans, thereby slowing down productivity and growth.

B  America’s immigration policy has ensured a supply of high-skill workers to help drive productivity and growth.

C  America has long had an open doors policy allowing any who are interested to immigrate; this has resulted in economic growth primarily in those areas along the Canadian and Mexican borders.

D  Immigration has no measurable impact on productivity and growth.

A  It is not indexed to inflation and has not been increased since 2009.

B  The Republican party lowered the minimum wage when it controlled the federal government in 2017.

C  Individuals must work at least 40 hours a week to qualify for the federal minimum wage.

D  There is no longer any federal minimum wage.

A  They help promote stable markets by reassuring investors of the rule of law.

B  They help promote economic growth through fostering innovation.

C  They help promote full employment through government workplace grants.

D  They help promote low inflation through management of the money supply.

A  control of politicians by corporate interests who run the political machines.

B  widespread use of child labor in coal mines and factories throughout the United States.

C  violent suppression of labor unions by big business.

D  unsanitary practices at meatpacking plants.

A  the minimum wage is indexed to inflation.

B  the minimum wage is not indexed to inflation.

C  federal income taxes inevitably become more progressive over time.

D  federal income taxes inevitably become more regressive over time.

A  neither the federal government nor the state governments sought to promote full employment.

B  only the federal government sought to promote full employment.

C  only state governments sought to promote full employment.

D  both the federal government and the state governments sought to promote full employment.

A  low; and has remained low

B  low; but increased by the mid-1980s and has remained high

C  high; and has remained high

D  high; but declined by the mid-1980s and has remained low

A  an iPhone

B  toll roads

C  a computer

D  the interstate highway system