Chapter 13 - Domestic Policy

Question 1

Contracting power

Answer 1

the power of government to set conditions on companies seeking to sell goods or services to government agencies

Question 2

contributory programs

Answer 2

social programs financed in whole or in part by taxation or other mandatory contributions by their present or future recipients. The most important example is Social Security, which is financed by a payroll tax

Question 3

cost-of-living adjustments (COLAs)

Answer 3

changes made to the level of benefits of a government program based on the rate of inflation

Question 4

Fiscal Policy

Answer 4

the government’s use of taxing monetary, and spending powers to manipulate the economy

Question 5

food stamps

Answer 5

coupons that can be exchanged for food at most grocery stores; the largest in-kind benefits program

Question 6

indexing

Answer 6

periodic adjusting of social benefits or wages to account for increases in the cost of living

Question 7

in-kind benefits

Answer 7

noncash goods and services provided to needy individuals and families by the federal government that the beneficiary would otherwise have to pay for in cash

Question 8

means testing

Answer 8

a procedure by which potential beneficiaries of a public assistance program establish their eligibility by demonstrating a genuine need for the assistance

Question 9

medicaid

Answer 9

federally and state-financed, state-operated program providing medical services to low-income people

Question 10

medicare

Answer 10

a form of national health insurance for the elderly and the disabled

Question 11

monetary policy

Answer 11

an effort to regulate the economy through the manipulation of the supply of money and credit. America’s most powerful institution in this area of monetary policy is the Federal Reserve Board

Question 12

noncontributory programs

Answer 12

social programs that provide assistance to people on the basis of demonstrated need rather than any contribution they have made

Question 13

public policy

Answer 13

a purpose or goal expressed by the government that is backed by a sanction (a reward or punishment)

Question 14

social security

Answer 14

a contributory welfare program into which working Americans contribute a percentage of their wages and from which they receive cash benefits after retirement

Question 15

subsidies

Answer 15

government grants of cash or other valuable commodities such as land to individuals or organizations; used to promote activities desired by the government, to reward political support, or to buy off political opposition