Chapter Fourteen: Policymaking

Question 1

Laissez-faire

Answer 1

“to leave alone” - free market without any intervention or regulation from government

Question 2

Keynesian economics

Answer 2

opposite of laissez-faire - deficit spending, stimulus package - spending money to stimulate the economy

Question 3

Deficit vs. debt

Answer 3

debt is accumulated deficit over time, deficit = amount overspent in a given years

Question 4

Federal income taxes

Answer 4

largest source of federal revenue today - progressive tax

Question 5

Regressive tax

Answer 5

spend more the less you make

Question 6

Progressive tax

Answer 6

spend more the more you make

Question 7

Flat tax

Answer 7

everyone spends the same

Question 8

Entitlement programs

Answer 8

largest amount of federal money goes to these - required by law, and are given to people meeting particular eligibility requirements - Social Security - mandatory spending

Question 9

National Defense

Answer 9

second largest amount of federal money

Question 10

National Debt

Answer 10

3rd largest amount (8%) of federal money

Question 11

Monetary policy

Answer 11

fed reserve - government control of money supply and circulation (plus interest rates)

Question 12

Inflation

Answer 12

devaluation of the dollar due to large amounts of money in circulation

Question 13

Deflation

Answer 13

too little money is in circulation

Question 14

Isolationism

Answer 14

philosophy that should avoid entangling alliances

Question 15

Containment

Answer 15

policy of keeping communism from spreading beyond the countries already under its influence

Question 16

Preemption

Answer 16

principle of attacking before being attacked - neo-cons

Question 17

Joint Chiefs of Staff

Answer 17

military advisory board that meets with Sec of Defense and Pres to consult military strategy

Question 18

Domestic policy

Answer 18

policy within our borders

Question 19

Regulatory policy

Answer 19

independent regulatory agencies steer policy in a given industry - EPA

Question 20

Goals of State Department

Answer 20

-protect national security
-provide international leadership in developing world peace
-insuring balance of power; keeping aggressive nations from overpowering weaker ones
-cooperating with other nations in solving international problems
-promoting human rights and democratic values
fostering cooperative foreign trade and globalization of trade through international organization