The great, vast majority of estates were not subject to the estate tax or death tax prior to its reduction during the Bush Administration.

True False

The US Government is currently running a budget surplus for Fiscal year 2009.

True False

Which of the following "market" events can lead to a "self-correction" that can pull an economy out of a recession.

 a. prices on goods can drop so more folks can buy more goods

 b. a new product is invented

 c. an existing product is improved

 d. a bunch of existing products can be wiped out and need replaced

 e. any or all of these can bring about a "self-correction" in the market

This president co-ordinated fiscal and monetary policy, raised taxes on your instructor but got the fed to cut interest rates, helping folks in debt the most.

 a. Carter

 b. Bush Sr.

 c. Reagan

 d. Obama

 e. Bush Jr

 f. Clinton

Wrote the "Wealth of Nations" in 1776, arguably the most important book since the bible.

 a. Thomas Jefferson

 b. Adam Smith

 c. John Adams

 d. Jefferson Smith

The unemployment rate peaked at about 13% under which president below?

 a. Carter

 b. Obama

 c. Reagan

 d. Bush Jr.

 e. Clinton

To which country listed below does the US owe the most $$ for having financed our national debt?

 a. The Oil Producing States

 b. the United Kingdom

 c. China

 d. Japan

Economic growth occurs within a market when...

 a. supply is greater than demand

 b. demand is greater than supply

 c. demand=supply

 d. quantity and supply exceed demand

 e. none of these is right

Energy prices were relatively stable from the 1950s to the 1970s.

True False

A market is created when...

 a. someone builds a market for people to shop in

 b. an election occurs

 c. there is a demand for a good or service (which may have not existed before)

 d. they knock down an old strip center and put up a new one

 e. all of these

When a market "peaks" the market is saturated with goods and services or Demand = Supply i(n other words...)

True False

Stagflation occurs when you have high unemployment and high inflation at the same time, like in the 1970s.

True False

Luxembourg leads the world with the highest per capita GDP. US and Swedish GDP per capita is about the same.

True False

Today, Corporate Income Taxes comprise the #1 source of Federal Tax Revenues.

True False

You are the chairman of the Federal Reserve Board, the economy is growing too much, inflation is taking off, demand is far greater than supply. The unemployment rate is low. What can you do to slow down demand and bring inflation under control?

 a. nothing

 b. raise interest rates by decreasing the money supply

 c. lower interest rates by increasing the money supply

 d. raise taxes and/or inflation

Who is/was David Stockman?

 a. He's our "sinner" 

 b. Reagan's 1st director of OMB

 c. the guy who used false budget projections to get Congress to agree to Reagan's tax cuts.

 d. all of these describe David Stockman

The economy is "contracting"; inflation is not a problem as prices are falling. The unemployment rate is increasing. You are the Chair of the Federal Reserve Board. What can you and the "Fed" do to turn the economy around?

 a. all of these

 b. you can cut taxes and raise government spending

 c. you can cut interest rates by increasing the money supply

 d. you can cut interest rates by cutting the money supply a LOT

 e. you can't do anything: you are F&C$ED!!!

The unemployment rate in the US today is HIGHER than it was during the great depression of the 1930s.

True False

This occurs during an economic expansion

 a. demand increases 

 b. unemployment declines

 c. you "climb" out of a trough

 d. you get economic recovery and eventually prosperity

 e. all of these occur 

The US National Debt stands at over $11 Trillion dollars.

True False

In what way/s is Supply-Side Economics different than Keynesian Economics?

 a. Supply Side Economics describes what government Monetary Policy should be, not what fiscal policy should be.

 b. Supply Side Economics is the same as Keynesian Economics

 c. Supply Side Economics advocates cutting the prices of goods to stimulate economic growth rather than stimulating demand by increasing wages.

 d. Supply-Side Economics advocates cutting taxes and raising government spending to stimulate economic growth.

This is the policy where the government raises or lowers interest rates in order to speed up or slow down interest rates.

 a. fiscal policy

 b. monetary policy

 c. economic policy

 d. debt service

Interest rates are historically higher now than at any point since 1970.

True False

Oil prices plummeted in (around) 1986, helping to bring inflation under control, lowering unemployment and causing a bust in the Texas housing market.

True False

When Reagan ran for President in 1980, he promised to simultaneously 

 a. raise military spending

 b. cut corporate taxes by 50%

 c. all of these

 d. cut taxes by 25% across the board

 e. balance the budget

This international incident triggered the OPEC oil embargo of 1973 which resulted in a quintuple increase in oil and gas prices in 3 months, wrecking havoc on the US economy and causing the Latin American debt crisis which helped lead to the S&L crisis in the 1980s.

 a. The Vietnam War

 b. The 1973 Arab-Israeli War

 c. The Iranian Hostage Crisis

 d. none of these

According to your instructor, Supply Side economics seeks to cause economic growth by making wealth people wealthier.

True False

The last president to Balance the Budget was...

 a. Clinton

 b. Bush Jr.

 c. Reagan

 d. Bush Sr.

Reagan was able to cut taxes, raise military spending and balance the budget, as promised.

True False

Which of the following is NOT a provision of the 2001 USA PATRIOT Act?

 a. The Act allows the use of "roving wiretaps."

 b. It allows detention of non-citizens for up to seven days without being charged with a crime

 c. The Act gives the authority to conduct secret investigations of suspected terrorists.

 d. It allows the suspension of habeas corpus for U.S. citizens.

 e. All of the above are provisions of the Act

A policy-making instrument composed of loosely related interest groups, congressional committees, presidential aides, and other parties is called a(n)

 a. policy web.

 b. issue network.

 c. iron triangle.

 d. agenda alliance.

 e. executive committee.

Federal Emergency Relief Administration (FERA) was established to

 a. give unemployed workers cash grants to get them through the summer.

 b. aid in the care of children orphaned by natural disaster.

 c. supply natural disaster relief to southern states.

 d. build bridges over flooded rivers.

 e. give bankers actual paper money to put in bank vaults.

Beneficiaries of the Social Security Act include

 a. widows and widowers.

 b. children of deceased or disabled persons.

 c. retired persons.

 d. disabled workers.

 e. All of the above

Figure 17-4 illustrates that the total size of the Federal Register increased the most in which of the following periods?

 a. 1971-1976

 b. 1946-1951

 c. 1981-1986

 d. 1991-1996

 e. 1936-1941

Public assistance is defined as

 a. programs such as unemployment insurance, disaster relief, or disability payments that provide benefits to all eligible citizens.

 b. programs in which eligibility is based on prior contributions to government, usually in the form of payroll taxes.

 c. aid to the poor.

 d. programs such as Medicaid and welfare under which applicants must meet eligibility requirements based on need.

 e. the many programs that the federal government provides to protect Americans against economic and social misfortune.

Which of the following is NOT a way in which issues become part of the policy agenda?

 a. Through interest group pressure

 b. Through congressional investigations

 c. Through events or crises

 d. Through coverage in newspaper or television stories

 e. Through random drawings

Social insurance is defined as

 a. programs such as Medicaid and welfare under which applicants must meet eligibility requirements based on need.

 b. programs in which eligibility is based on prior contributions to government, usually in the form of payroll taxes.

 c. aid to the poor.

 d. the many programs that the federal government provides to protect Americans against 

economic and social misfortune.

 e. programs such as unemployment insurance, disaster relief, or disability payments that provide benefits to all eligible citizens.

____________________ is the final step in the process of making public policy.

 a. Running the program itself

 b. Making assumptions about the world

 c. Reviewing decision making procedures

 d. Deciding how much to do

 e. Setting the agenda

Since 1950 human resource spending has

 a. tripled.

 b. doubled.

 c. increased 150%.

 d. stayed about the same.

 e. quadrupled.

In 2008, Social Security and Medicare expenditures totaled how much?

 a. $2 trillion

 b. $966 billion

 c. $341 billion

 d. $755 million

 e. $56 million

The movement of public opinion toward public policy from initial enthusiasm for action to realization of costs and a decline in interest is called a(n)

 a. issue-attention cycle.

 b. policy progression.

 c. issue flowchart.

 d. policy making circle.

 e. policy agenda.

Choosing the problem to be solved is the essential decision in setting the

 a. policy agenda.

 b. policy context.

 c. stage for a policy fight.

 d. final step of the policy process in motion.

 e. None of the above

Which of the following is a way in which government can convey a public policy to the nation?

 a. Laws passed by Congress and signed by the president

 b. Official proclamation

 c. Elections

 d. News bulletins

 e. Press conferences

A tool the federal government uses to solve most public problems is

 a. directly providing goods.

 b. providing protection against risk.

 c. spending money.

 d. All of the above

 e. None of the above

Social Security, air traffic control, national defense, and education spending are examples of _________________ policy.

 a. regulatory

 b. redistributive

 c. unrewarded

 d. distributive

 e. pejorative

The list of issues that the federal government pays attention to is called the

 a. federal docket.

 b. presidential priorities.

 c. policy agenda.

 d. implementation items.

 e. programs watch.

Controlling crime is considered primarily a(n) ________________ matter.

 a. state and local

 b. regional

 c. ethical

 d. religious

 e. federal

Most federal government action on public policy is

 a. judicial.

 b. triangular.

 c. punctuating.

 d. incremental.

 e. comprehensive.

Efforts to study an issue, appoint a blue-ribbon commission, or highlight the need for future action are examples of _______________ benefits.

 a. symbolic

 b. pretend

 c. enlisted

 d. federal

 e. regulatory