20 MCQ's

1. The defining characteristic of a social insurance program is that
eligibility for the program's benefits is confined to those who pay the special taxes that fund the program.
it is administered jointly by the national government and the states.
it is targeted at those who are most in need of welfare assistance.
it is administered through private insurance companies.
None of the answers are correct.
 
2. In regard to the Iraq conflict, the United States
has been able to count on its traditional allies for troops and money for the war.
has been able to count on its traditional allies for troops but not money.
has been able to count on its traditional allies for money but not troops.
has borne the very large share of military casualties and money costs of the war.
has had financial support from the Arab states although they have publicly stated their opposition to the war in Iraq.
 
3. The term "means test" refers to
the tax on a portion of the Social Security benefits of upper-income retirees.
whether an applicant's income is low enough to qualify for public assistance.
the mandatory physical examination that Medicare and Medicaid applicants must undergo before they can receive benefits.
the mandatory psychological examination that Medicare and Medicaid applicants must undergo before they can receive benefits.
None of the answers are correct.
 
4. The key issue of regulatory policy is
the great amount of paperwork (red tape).
whether the costs imposed by regulation on business outweigh its potential benefits.
whether corporate and consumer interests are equally represented on regulatory commissions.
whether it has bipartisan support in Congress.
whether the commissioners' opinion about a policy is unanimous.

1. he Social Security benefits that today's retirees receive are funded primarily by
tax contributions they made in the past and which were put in a trust fund from which current payments are made.
payroll taxes on people who are currently working.
equal contributions from the national and state governments.
borrowed funds, which contribute to the national debt.
None of the answers are correct.
 
2. Of the following, which is likely the least criticized public assistance program?
Supplemental Security Income
Aid to Families with Dependent Children
Food Stamps
Medicaid
housing subsidies
 
3. ________ assists the president in creating the annual budgetary proposal to Congress.
The U.S. Treasury Department
The Federal Reserve Board
The Congressional Budget Office
The Council of Economic Advisers
The Office of Management and Budget
 
4. The foundation for U.S. policy toward the Soviet Union after World War II was
détente.
unilateralism.
containment.
internationalism.
isolationism

1. Which of the following is a true statement about the visibility of poverty in American society today?
Media coverage often focuses on the plight of the poor in America.
In polls each year, Americans identify the problem of poverty as one of the nation's top three problems.
Poverty is less visible in the suburbs than in inner cities or rural areas.
Poverty has been virtually eliminated in the United States.
Poverty is most apparent in the case of elderly Americans.
 
2. Economic efficiency requires
that the free market not be regulated by government.
firms to fulfill as many of society's needs by using as few of their resources as possible.
the economy to be organized around large firms.
economic transactions to be fair to each party.
economic transactions to be equal to each party.
 
3. Keynesian economics emphasizes ________ as a means of stimulating the economy in order to bring about the end of an economic recession or depression.
reduced taxes
increased government spending
decreased regulation
decreased inflation
increased taxes
 
4. Which of the following is true regarding income patterns in America?
The income of the average American family exceeds $100,000.
The top fifth of Americans in terms of income receive half of the total income in the nation.
The bottom fifth of Americans get only slightly less than 20 percent of total national income.
The United States has the lowest amount of income inequality of any industrialized democracy.
U.S. tax policy is designed to transfer a large proportion of the nation's wealth from richer Americans to poorer ones.

1. The Fed is a preeminent example of ________ politics at work.
pluralist
elitist
major itarian
Republican
Democratic
 
2. If the economic problem is low productivity and high unemployment, the fiscal policy action on the demand side would be to
increase taxes.
cut business taxes.
increase spending.
decrease spending.
None of the answers are correct.
 
3. The TANF program must operate within all the following guidelines except
states have no discretion in their handling of welfare cases.
eligibility for cash assistance is limited to no more than five years in a lifetime.
within two years, the heads of most families on welfare have to find work or risk the loss of benefits.
unmarried teenage mothers are qualified for welfare benefits only if they remain in school and live with a parent or legal guardian.
single mothers will lose a portion of their benefits if they refuse to cooperate in identifying the father of their children.
 
4. Which country produces the largest proportion of the world's greenhouse gas emissions, which are a cause of global warming?
Brazil
Russia
China
United States
India

1. President Franklin Roosevelt's methods of restoring the economy's health after the Depression were closest to the economic position of
Adam Smith.
John Maynard Keynes.
Karl Marx.
Alan Greenspan.
Milton Friedman.
 
2. The nuclear triad consists of
land-based missiles, long-range bombers, and tactical nuclear weapons.
long-range bombers, jet fighters, and submarine-based missiles.
land-based missiles, submarine-based missiles, and long-range bombers.
long-range bombers, land-based missiles, and cruise missiles.
None of the answers are correct.

3. The key issue of regulatory policy is
the great amount of paperwork (red tape).
whether the costs imposed by regulation on business outweigh its potential benefits.
whether corporate and consumer interests are equally represented on regulatory commissions.
whether it has bipartisan support in Congress.
whether the commissioners' opinion about a policy is unanimous.

4. Which of the following statements is true concerning American public opinion on school vouchers?
Americans are divided in their opinions on school vouchers.
Americans strongly support school vouchers.
Americans strongly oppose school vouchers.
Most Americans have never heard of school vouchers.
Americans favor higher taxes to pay for vouchers.