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Multiple Choice Quiz
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1
One of the most far-reaching changes in public policy in recent years has been
A)the overhaul of the entire civil-service system.
B)the redesign of the welfare system.
C)development of the nationwide universal health insurance plan.
D)the reorganization of the judicial branch of government.
E)None of these answers is correct.
2
What part of the business cycle occurs when unemployment is high and inflation is low to moderate?
A)depression
B)deflation
C)recession
D)stalling economy
E)None of these answers is correct.
3
The Federal Reserve
A)is a quasi-independent agency.
B)is a government corporation.
C)is a private bank hired by the government.
D)recommends budgeting policies in the executive branch.
E)None of these answers is correct.
4
Which of the following statements best describes the relationship today between government and the economy in the United States?
A)The economy is largely self-regulating.
B)The government subsidizes economic interests but otherwise leaves them to operate as they please.
C)The government is the driving force in the U.S. economy; business has a secondary role.
D)The government has an important role in regulating and maintaining the U.S. economy.
E)The government owns most of the means of production in the United States.
5
Fiscal policy is a mechanism the government employs to influence the economy. Fiscal policy is based on
A)the idea that a balanced budget is the key to a healthy economy.
B)the money supply.
C)the government's taxing and spending decisions.
D)the importance of maintaining a 12-month (fiscal year) economic cycle.
E)the projections of the Federal Reserve Board.
6
Policy outcomes are measured by their
A)costs to the general public.
B)costs and benefits to the general public.
C)reviews in the press by experts in the field of the policy.
D)long-term burden to taxpayers of the future.
E)adherence to international treaty provisions.
7
Keynesian economics emphasizes ________ as a means of curtailing economic downturns.
A)reduced taxes
B)increased government spending
C)decreased regulation
D)decreased inflation
E)increased taxes
8
Which public policy is identified with the presidency of Ronald Reagan?
A)reinventing government
B)development of the Internet
C)supply-side economics
D)tort reform
E)None of these answers is correct.
9
Monetary policy controls
A)how much products cost.
B)how much money is in circulation.
C)how much stockbrokers earn.
D)both how much products cost and how much money is in circulation.
E)All these answers are correct.
10
Government bonds
A)finance the campaigns of presidential candidates every four years.
B)finance the deficit.
C)finance the sub-insurance program of the U.S. government.
D)finance higher education in the District of Columbia.
E)None of these answers is correct.
11
The term entitlement refers to a program
A)which provides indirect payments to individuals, such as funding for public schools.
B)benefiting individuals, designed specifically to alleviate the hardships of old age.
C)which requires the payment of benefits to any individual who meets the eligibility criteria.
D)of social welfare for which citizenship is the only criterion of eligibility.
E)None of these answers is correct.
12
The Aid to Families with Dependent Children (AFDC) program was unpopular in part because of
A)its public perception of welfare dependency and irresponsibility.
B)lack of public concern for child welfare.
C)public opposition to locally administered welfare programs.
D)public opposition to welfare programs for the needy.
E)None of these answers is correct.







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