Lesson 51 - unit 11

Question 1

What is an example of how people differ over the goals of Federal economic policy?

Answer 1

Some say the primary goal is economic freedom and some say it is economic security.

Question 2

What basic principle has guided the American economy?

Answer 2

Economic freedom.

Question 3

What are some examples of how the Federal government has become involved in the economy?

Answer 3

1. When safety of food and drugs was a concern, the Food and Drug Administration (FDA) was created.
2. When the stock market crashed in 1929, the Securities and Exchange Commission was founded.
3. Social Security was founded to help seniors.
4. The Occupational Safety and Health Administration was created to address safety in the workplace.

Question 4

When is government intervention in the economy justified?

Answer 4

When the benefit outweighs the cost.

Question 5

Economic policy is made up of what 2 elements?

Answer 5

Monetary policy and fiscal policy.

Question 6

How is Congress involved in economic policy?

Answer 6

It passes laws that set fiscal policy and by activities of House and Senate committees.

Question 7

What does the Congressional Budget office do?

Answer 7

It provides objective, nonpartisan, and timely analysis to aid in economic and budgetary decisions on the wide array of programs covered by the Federal budget.

Question 8

What is the Cabinet of Economic Advisors?

Answer 8

A 3-member group of economists that advises the president on domestic and international economic policy.

Question 9

What cabinet department is most involved with Federal economic policy?

Answer 9

The Department of Treasury.

Question 10

What are 4 kinds of securities that the Bureau of Public debt sells?

Answer 10

1. T-bills
2. T-notes
3. T-bonds
4. Treasury Inflation Protected Securities (TIPS)