unit four quiz

Question 1

workers pay 60% of the Social Security tax, while the other 40% is paid by the US Treasury

Answer 1

false

Question 2

medicare is a private health insurance program for government employees.

Answer 2

false

Question 3

medicaid is jointly funded by the federal government and the states

Answer 3

true

Question 4

the business cycle is a measure of GDP over time

Answer 4

true

Question 5

a recession is a period of economic growth characterized by low unemployment

Answer 5

false

Question 6

according to Keynesian economics, the government should limit its spending in a recession

Answer 6

false

Question 7

in the United States, monetary policy is under the control of Congress and the president

Answer 7

false

Question 8

the federal reserve tries to regulate the economy by adjusting interest rates

Answer 8

true

Question 9

with social security reform, “means testing” is a proposal to do what?

Answer 9

only pay benefits to people who need them

Question 10

between the following programs, which one is the best example of cooperative federalism?

Answer 10

medicaid

Question 11

in addition to retirement income, social security provides what kind of benefits?

Answer 11

disability

Question 12

which program has a 2.9% payroll tax?

Answer 12

medicare

Question 13

which program is only available to the poor?

Answer 13

medicaid

Question 14

inflation is a measure of what?

Answer 14

prices

Question 15

if inflation becomes a major concern, the Federal Reserve might respond by increasing what?

Answer 15

interest rates