Intro to Public Policy & Economic Policy Quest

What can the consumer price index measure?

• Unemployment
• Inflation
• Interest Rates
• consumer debt

Which of the following statements regarding the role of the federal government in the economy is correct?

• The Federal Reserve Board has primary responsibility for setting fiscal policy.
• Most Americans would prefer an economy completely free of any federal regulations
• Presidential election outcomes are heavily influenced by the health of the economy.
• The scope of federal activity in the economy contracts during economic downturns and expands during economic recoveries.

The pie graph above represents a key element of which of the following?

• Fiscal Policy
• Monetary Policy
• Keynesian economic theory
• Supply-side theory

Traditionally, the Republican Party has been viewed as favoring which of the following groups?

• big business
• the poor
• the middle class
• African-Ameircans
• Hispanics

Traditionally, the Democratic Party has been known as

• supporters of a Keynesian demand side philosophy
• advocates of ant regulation of the economy
• supply-siders
• believers in trickle-down economics
• proponents of repeal of capital gains taxes

A primary way that the Federal Reserve regulates the money supply is when it

• votes to increase taxes
• adjusts the rate of inflation
• votes to decrease taxes
• votes to increase price supports
• buys and sells bonds

Supply-side economics urge

• government stimulation of the economy by increasing consumption
• increase government spending on social programs
• increased government borrowing of money for gross private investment
• large tax cuts for business by the government
• an increase of the management of the economy by the government

If Congress does not pass a budget by the beginning of the fiscal year, then which of the following takes place?

• the president can impose a budget to keep the government running.
• the Courts can step in and create a temporary budget.
• Government offices are automatically shut down.
• a contingency budget goes into effect.
• The Congress must pass a continuing resolution.

Which of the following areas gives the federal government the greatest amount of income?

• income taxes
• Social Security and payroll taxes
• Corporate taxes
• Luxury taxes
• money collected from tariffs

An example of discretionary item in the federal budget is

• interest on the public debt
• spending on national parks
• Social Security payments
• veterans’ pensions
• Liquidation (selling out on) of prior obligations