Question 1.1. Radicals use the term "political economy" instead of _____ to describe their critique of capitalism and the inequitable distribution of wealth among nations.
Marxism
laissez-faire
public choice
Keynesian
Question 2.2. Describe British economist John Maynard Keynes' proposal to cure economic depressions.
Keynes suggested infusing the economy with government funds to promote spending.
Keynes advocated for "trickle-down" economic policies.
Keynes argued for stronger stimulus packages to corporations and small businesses.
Keynes proposed to cure depressions by dampening the swings of the business cycle.
Question 3.3. The 1973 Mideast war allowed members of the Organization of Petroleum Exporting Countries (OPEC) to _____.
sell to nations in Eastern Europe
export to Japan and China
quadruple oil prices
keep oil prices down
Question 4.4. Conservatives hold that Johnson's Great Society was a waste of money, locking recipients into _____ and encouraging a subculture of drugs and crime.
entitlement benefits
perpetual subsidies
social safety nets
welfare dependency
Question 5.5. Which U.S. President is responsible for implementing the Food Stamp program nationwide?
John F. Kennedy
Lyndon B. Johnson
Richard Nixon
Jimmy Carter
Question 6.6. Which of the following is an increasing financial concern of the Medicare program?
The proportion of older people in American society is increasing steadily.
Every American citizen obtains Medicare on reaching age 65, regardless of class.
Economic inequality renders Medicare more necessary for some than for others.
Wealthy Americans are taking advantage of the Medicare system.
Question 7.7. According to political scientist Ira Sharkansky, "All modern states are welfare states, and all welfare states are _____."
democratic
compassionate
bureaucratic
incoherent
Question 8.8. How does the American welfare state compare to those of other industrialized nations?
Much less is allocated to welfare in the United States.
Other nations allocate less to welfare than the United States.
The United States allocates about the same to welfare.
Few nations besides the United States maintain funds for welfare.
Question 9.9. Most liberals feel that the poverty line is _____.
reasonable
disproportionate
too high
too low
Question 10.10. Theoretically, what are the consequences if the government assumes the burden of bad loans?
Citizens will default on their mortgages.
Banks will learn from their mistakes and pay back the burden with interest.
Ultimately, the government will profit.
Firms will be encouraged to continue their risky behavior.