1. "Subprime" mortgages were given to people who
were receiving their first home loan
had low credit ratings and put up a small (if any) deposit
were receiving loans on homes of less than $100,000
had declared bankruptcy sometime in the previous six months
2. GDP, unemployment, and inflation are all measures of a nation's economic health.
True
False
3. The largest federal expenditures go for
defense
Medicare / Medicaid
Social Security
the War on Terror
4. The control of the money supply is a responsibility of the
Office of Management and Budget
Federal Reserve Board
Congressional Budget Office
Treasury
5. The financial crisis beginning in 2008 was most closely tied to what market?
automobile
housing
electronics
agricultural products
6. Government decisions regarding taxing, spending, and deficits reflect
monetary policy
fiscal policy
classical policy
Keynesian policy
7. Unemployment rates are generally _____ for young people as compared to the general population.
higher
lower
about the same
8. Which branch of government typically initiates the budgetary process?
Executive
Federal
Legislative
Senate
9. A _____ tax is one in which the rate of taxation is higher for individuals who earn higher incomes.
Progressive
Distributive
Regressive
Sales
10. An entitlement program refers to
A program created by an unfunded federal mandate
A program for which people are eligible based on their economic status or age
A regulatory program
State-level programs where states must demonstrate entitlement at the federal level
11. The name for the federal agency with appointed, long-serving board members that sets monetary policy in order to keep inflation in check and encourage economic growth.
Congressional Budget Office (CBO)
Federal Reserve (FED)
Office of Management and Budget (OMB)
Council of Economic Advisors (CEA)
41. The American Recovery and Reinvestment Act (2009) attempted to stimulate economic growth primarily using which economic policy tool?
Government spending
Regulations
Deficit reduction
Market incentives
42. The main problem with running a large debt is that
The interest we will have to pay on the debt continues to grow, squeezing out other needs
A growing portion of debt is owned by foreigners (including other countries)
We will have less money available to fund growing programs like Medicare and Social Security
All of the above
43. What is the difference between the national deficit and the national debt?
The debt is the yearly amount government expenses exceed revenue. The deficit is the accumulation of the deficits over the years
The deficit is based on the distribution of entitlement programs. The debt is the ceiling for the federal budget
The deficit is the yearly amount government expenses exceed revenue. The debt is the accumulation of the deficits over the years
he deficit is the portion of the federal budget allocated by Congress. The debt is the portion of the budget allocated by the executive branch
44. In general, increasing levels of unemployment will lead to _____ government revenue and _____ government expenditures.
Decreasing / decreasing
Increasing / increasing
Decreasing / increasing
Increasing / decreasing
45. The economic policy goal of _____ refers to policies that are designed to increase productivity, commerce, sales, employment, and the general pace of activity within the economy.
Full employment
Economic growth
Low levels of inflation
Managing debts and deficits
46. _____ is critical to all other areas of policy, but is not often recognized for its central role.
Education policy
Health care policy
Federal policy
Economic policy
47. One of the major challenges facing the U.S. health care system is declining access to care. This includes
The reduction of benefits and difficulty obtaining care among persons enrolled in Medicaid
Private insurance companies restricting coverage for many services
More and more people have jobs that pay low wages and do not provide health insurance
All of the above
48. Which statement describes how most welfare programs are financed and implemented?
The federal government provides much of the funding and state governments manage the programs
State governments provide funding for the programs, which are managed by the federal government
States fund and manage the programs
The federal government funds and manages the programs
49. An increase in consumer goods prices over time is called:
increments
price gouging
inflation
price ceiling
50. _____ policy refers to the government's budgetary process, and includes the sum-total of taxing and spending.
Fiscal
Regulatory
Monetary
Distributive