Quiz 4 study guide

Question 1

economic theory

Answer 1

a theory of commercial activities

Question 2

fiscal policy

Answer 2

yearly government budget. government action of either raising or lowering taxes.

Question 3

monetary policy

Answer 3

how the country regulates money supply (federal reserve)

Question 4

trade policy

Answer 4

a set of rules and regulations that are intended to change international trade flows, particularly to restrict imports

Question 5

social security

Answer 5

an entitlement program mandated by law. all those who qualify receive it. programs includes retired workers over 65, disabled, and temporarily unemployed

Question 6

social welfare

Answer 6

government funded programs made to help specific groups of people- food stamps, government housing

Question 7

health care

Answer 7

medicare and medicaid

Question 8

GDP

Answer 8

Gross Domestic Product- the follow amount of all final goods and services produced within a countries national borders in a year.

Question 9

Medicare

Answer 9

federal government pays for part of the cost of medical care for retired/disabled people covered by social security.

Question 10

mixed economy

Answer 10

capitalist free-market systems in which both government and private industry play a role. Both private and public ownership of the means of production and distribution of goods and services.

Question 11

which of the following is NOT generally a step in the policy-making process?

Answer 11

Abandoning governmental solutions for societal problems

Question 12

Which of the following is an example of a policy that a believer in laissez-faire economics might support?

Answer 12

The implementation of a flat tax

Question 13

supply-side economics

Answer 13

economic growth can be most effectively created by investing in capital and by lowering barriers on the production of goods and services

Question 14

budget deficits

Answer 14

indicator of financial health in which expenditures exceed revenue

Question 15

which action would a lawmaker who follows the Keynesian school of economics be most likely to take during an economic recession?

Answer 15

increase domestic government spending

Question 16

Fiscal year

Answer 16

a year for tax purposes- can start on any day but must end 1 year later.

Question 17

entitlements

Answer 17

owning something

Question 18

mandatory spending

Answer 18

spending that is required by law to fund entitlement programs like social security, medicare, medicaid, and veteran pensions.

Question 19

discretionary spending

Answer 19

spending not required by law. Includes government operations such as defense, education, highways, and research grants. These are the primary targets when cuts happen to balance the budget.

Question 20

deficit spending

Answer 20

the federal governments practice o spending more money than it takes in as revenues/taxes.

Question 21

Medicare

Answer 21

provides government assistance to people older than 65 for health care, covered by social security.

Question 22

5 steps for government to apply public policy to a societal problem

Answer 22

1. Define the role of government in solving the problem
2. Agenda setting
3. policy formation and adoption
4. policy implementation
5. policy evaluation

Question 23

5 steps for government to apply public policy to a societal problem

Answer 23

1. Define the role of government in solving the problem
2. Agenda setting
3. policy formation and adoption
4. policy implementation
5. policy evaluation

Question 24

DEA

Answer 24

Drug Enforcement Agency- federal agency responsible for enforcing laws and regulations governing narcotics and controlled substances

Question 25

FBI

Answer 25

Federal Bureau of Investigation- the principle investigative unit of the US department of Justice.

Question 26

CIA

Answer 26

Central Intelligence Agency- coordinates american intelligence and counterintelligence activities abroad.

Question 27

EPA

Answer 27

Enviormental Protection Agency- an agency of the federal government that administers all of the government environmental legislation. Largest federal independent regulatory system

Question 28

SSI

Answer 28

Supplemental security income- cash payments to aged, blind, or dibbles people whose income is below a certain amount.

Question 29

medicaid

Answer 29

provides medical and health-related services for low-income parents, children, seniors, and people with disabilities. federal and state government.

Question 30

mandatory spending

Answer 30

spending that is required by law to fund entitlement programs like social security, medicare, medicaid, and veteran pensions.

ex. social security, medicare

Question 31

discretionary spending

Answer 31

spending not required by law. Includes government operations such as defense, education, highways, and research grants. These are the primary targets when cuts happen to balance the budget.

ex. defense, highways, research, education

Question 32

5 components of US foreign policy

Answer 32

a

Question 33

How federal government keeps you safe

Answer 33

• foreign policy
• government regulation
• fiscal policy
• monetary policy
• social policy

Question 34

3 components of US social policy

Answer 34

• protect against risk and insecurity (FDA)
• promote equal opportunity (YMCA, Boys and Girls Club)
• assist the poor (food stamps, government homes)

Question 35

5 components of public policy

Answer 35

• foreign policy
• government regulation
• fiscal policy
• monetary policy
• social policy

Question 36

EPA

Answer 36

Environmental Protection Agency- an agency of the federal government that administers all of the government environmental legislation. Largest federal independent regulatory system

Question 37

5 components of public policy

Answer 37

• foreign policy
• government regulation
• fiscal policy
• monetary policy
• social policy

Question 38

kenesian response to economic recession

Answer 38

increase domestic government spending, make the economy better by spending more

Question 39

kenesian response to economic recession

Answer 39

increase domestic government spending, make the economy better by spending more

Question 40

what is the most important power of congress with public policy?

Answer 40

power of the purse- threat to cut funding for the president

ex. congress threat in early 70s to cut finding in Vietnam so nixon would pull out of Vietnam

Question 41

How monetary policy is implemented by the federal reserve

Answer 41

• by manipulating the reserve requirement, which raises or lowers the amount of money banks are required to keep on hand.
• by manipulating the discount rate, which raises or lowers the interest banks pay to the federal reserve banks for borrowing money.
• by manipulating open market operations, the federal reserve buys and sells US government bonds.

Question 42

5 components of US foreign policy

Answer 42

• Diplomacy
• Military and security policy
• international human rights policies
• economic policies
• environmental policy

Question 43

executive agreements

Answer 43

negotiation between leaders- doesn’t require 2/3 vote, only majority vote

Question 44

american goals

Answer 44

• promote stable markets
• promote economic prosperity
• promote business development
• protect consumers and employees

Question 45

in what decade did the federal government exercise the most regulatory action?

Answer 45

• 1930s- New Deal