Unit 8 - Economic Policy (16.1, 16.3, 16.7)

Question 1

cost

Answer 1

total spent for goods or services including money and time and labor

Question 2

benefit

Answer 2

any satisfaction that people believe that they will enjoy if the policy is adopted

Question 3

client politics

Answer 3

identifiable, small group will benefit but a large part of society will pay the costs

Question 4

entrepreneurial politics

Answer 4

political activity with distributed benefits to large numbers or society as a whole and concentrated costs imposed on a small identifiable group pays

Question 5

majoritarian politics

Answer 5

Make appeals to large blocks of voters and their representatives in hopes of finding a majority

Question 6

interest group politics

Answer 6

A proposed policy will confer benifits on come relativly small, identifiable group and impose cost on another small, equally identfifiable group

Question 7

policy entrepreneur

Answer 7

politicians in and out of gov who find ways of pulling together a legislative majority on behalf of interests that are not well represented in the gov

Question 8

public policy

Answer 8

A choice that government makes in response to a political issue

Question 9

perception

Answer 9

The process by which individuals perceive what they want to in media messages

Question 10

budgeting

Answer 10

step 3 in economic policy, deciding amount needed to carry out policy

Question 11

formulation

Answer 11

step 2 in economic policy, crafting proposed course of action

Question 12

agenda

Answer 12

step 1 in economic policy, deciding what issues to discuss

Question 13

adoption

Answer 13

step 4 in economic policy, approval of a policy proposal

Question 14

implementation

Answer 14

step 5 in economic policy, carrying the policy out

Question 15

evaluation

Answer 15

step 6 in economic policy, did the policy achieve its goals

Question 16

President

Question 17

Secretary of Treasury

Question 18

OMB (Office of management and budget)

Question 19

CBO (Congressional Budget Office)

Question 20

CEA (council of economic advisors)

Question 21

congress

Question 22

chairman of the fed

Question 23

the fed

Question 24

TARP (Troubled Asset relief program)

Answer 24

political activity with distributed benefits to large numbers or society as a whole and concentrated costs imposed on a small identifiable group pays

Question 25

American Recovery and Reinvestment Act

Answer 25

designed to stimulate the U.S. economy by saving jobs jeopardized by the Great Recession of 2008–09 and creating new jobs

Question 26

Monetary Responses of 2008

Question 27

Gramm-Rodman-Hollings Act

Answer 27

legislation mandating maximum allowable deficit levels each year until 1991, when the budget was to be balanced

Question 28

Congressional Budget & Impoundment Act of 1974

Answer 28

governs the role of the Congress in the United States budget process, est. congressional budget office

Question 29

Dodd-Frank Act

Answer 29

intended to curb the extremely risky financial industry activities that led to the financial crisis of 2007–2008, to protect consumers and taxpayers from egregious practices like predatory lending

Question 30

GDP (Gross Domestic Product)

Answer 30

the dollar amount of all final goods and services produced within a country’s national borders in a year

Question 31

GNP (gross national product)

Answer 31

he dollar value of all final goods, services, and structures produced in one year with labor and property supplied by a country’s residents

Question 32

CPI (Consumer Price Index)

Answer 32

a measure of the average change overtime in the prices paid by urban consumers for a market basket of consumer goods and services

Question 33

inflation

Answer 33

rise in the general price level (and decrease in dollar value) owing to an increase in the volume of money and credit in relation to available goods

Question 34

recession

Answer 34

A slowdown in economic activity, officially defined as a decline that persists for two quarters (six months)

Question 35

fiscal policy

Answer 35

decisions the government makes about government spending and taxation

Question 36

monetary policy

Answer 36

decisions the government makes about how much money should be in the economy

Question 37

Keynesian policy

Answer 37

economic theory stating that government spending should increase during business slumps and be curbed during booms, developed by economist John Maynard Keynes during the 1930s as a response to the Great Depression

Question 38

supply side

Answer 38

an economic theory advocated by President Reagan holding that too much income goes to taxes so too little money is available for purchasing, and the solution is to cut taxes and return purchasing power to consumers

Question 39

monetarism

Answer 39

A theory that government should control the money supply to encourage economic growth and restrain inflation (conservatives like)

Question 40

why the budget is the foundation for economic policy:

Answer 40

Stabilization of the economy is one of the goals that governments attempt to achieve through manipulation of fiscal and monetary policies

Question 41

House Ways and Means Committee

Answer 41

has the responsibility for raising the revenue required to finance the Federal Government

Question 42

Senate Finance Committee

Answer 42

The senate committee that, along with the House Ways and Means Committee, writes the tax codes, subject to the approval of congress as a whole.

Question 43

Appropriations Committees

Answer 43

responsible for appropriating funding for most of the functions of the federal government

Question 44

GAO (Government Accountability Office)

Answer 44

Often called the “congressional watchdog,” GAO investigates federal spending and performance

Question 45

budget

Answer 45

A policy document allocating burdens (taxes) and benefits (expenditures)

Question 46

deficit

Answer 46

An excess of federal expenditures over federal revenues

Question 47

incrementalism

Answer 47

The belief that the best predictor of this years budget is last years budget plus a little bit more

Question 48

budget resolution

Answer 48

A resolution binding Congress to a total expenditure level, supposedly the bottom line of all federal spending for all programs

Question 49

reconciliation

Answer 49

A congressional process through which program authorizations are revised to achieve required savings. It usually also includes tax or other revenue adjustments

Question 50

authorization bill

Answer 50

An act of Congress that establishes, continues, or changes a discretionary government program or an entitlement. It specifies program goals and maximum expenditures for discretionary programs

Question 51

continuing resolution

Answer 51

When Congress cannot reach agreement and pass appropriations bills, these resolutions allow agencies to spend at the level of the previous year

Question 52

debt limit/ceiling

Answer 52

the limit on how high the debt can go, Congress can change the limit

Question 53

steps of public policy process (6)

Answer 53

agenda, formulation, budgeting, adoption, implementation, and evaluation