Multiple choice

1. In 2002, President George W. Bush labeled ________ an axis of evil.

Cuba, China, and Vietnam

Ethiopia, Somalia, and Libya

Russia, China, and North Korea

Saudi Arabia, Syria, and Jordan

Iraq, Iran, and North Korea

2. Since the Cold War ended, U.S. policymakers' concern with nuclear weaponry has shifted to

the possibility of a computer error in the U.S. or former Soviet weapons systems that could mistakenly launch a nuclear missile.

the spread of nuclear technology to irresponsible regimes and terrorists.

the use of a tactical nuclear weapon in ethnic conflicts in eastern Europe.

the possibility that, in the process of dismantling the U.S. and former Soviet arsenals, a nuclear warhead could be accidentally detonated.

the spread of nuclear technology to NATO forces.

3. Fiscal policy is a mechanism which the government employs to influence the economy. Fiscal policy is based on

the idea that a balanced budget is the key to a healthy economy.

the money supply.

the government's taxing and spending decisions.

the importance of maintaining a 12-month (fiscal year) economic cycle.

the projections of the Federal Reserve Board.

4. Compared to tax policy in Western European democracies, tax policy in the United States shifts

a substantially greater portion of income from the rich to the poor.

a slightly greater portion of income from the rich to the poor.

about the same portion of income from the rich to the poor.

a smaller portion of income from the rich to the poor.

no income from the rich to the poor.