Unit 4 Public Policy

Luna is studying the impact of the Federal Reserve's actions on her local economy. Which of the following actions by the Federal Reserve strongly influences local economies?

• It can raise or lower property taxes.

• It can provide stimulus money for job creation.

• It can require banks to provide savings accounts to the community.

• It can make loans cheaper or more expensive by adjusting interest rates.

Rohan is studying international trade policies. Which of the following government actions can be taken to protect domestic business and industry from inexpensive foreign goods?

• Impose tariffs on imports

• Establish free trade zones

• Provide amnesty to foreign-born workers

• Grant foreign aid to underdeveloped nations

James is studying how the Federal Reserve uses open market operations, the discount rate, and reserve requirements to most directly affect the —

• amount of taxes collected

• minimum wages of workers

• cost of doing business overseas

• supply of money in the economy

How does Congress fulfill this duty of the federal government? The United States . . . shall protect each of them [the states] against Invasion. . . . — Article 4, U.S. Constitution

• by passing legislation to govern immigration

• by allocating funds for national defense

• by overseeing the agency that controls international trade

• by appointing commanders of the armed forces

Michael and Maya are discussing which phrase from the U.S. Constitution serves as the basis for the government actions described in recent news headlines. Which one is it?

• to form a more perfect union

• establish justice

• insure domestic tranquility

• provide for the common defense

This excerpt from 1987 BEST describes how the United States uses its economic powers to- Except as otherwise provided in regulations . . . no goods or services of Iranian origin may be imported into the United States. . . . —Section 1, Executive Order 12613

• protect consumers from products manufactured by unregulated industries.

• encourage international cooperation through trade partnerships.

• protect domestic manufacturing from unfair competition.

• bring about changes in policy by foreign governments.

How does the United States Patent and Trademark Office encourage entrepreneurship? Mission: To foster innovation and competitiveness by: Providing high quality and timely examination of patent and trademark applications, guiding domestic and international intellectual property policy, and delivering intellectual property information and education worldwide.

• by providing funding for innovative products

• by ensuring the safety of new merchandise

• by regulating the distribution of information

• by protecting the rights of inventors

During a school project, Lily and James explored the benefits of government-funded research. They discovered several innovations initially developed for the Space Program: - Freeze-dried food - Water purification systems - Solar panels - UV-blocking glass - Wireless headsets

• to promote stability through fiscal policies

• to sponsor plans to develop urban areas

• to support basic research for technological advances

• to provide large companies with military contracts

Mia is studying different economic systems in her social studies class. She learns that in countries with socialist governments, large industries are sometimes controlled by the government. Why doesn’t the government of the United States control any large industries?

• because the United States places more importance on the value of private property

• because the United States supports a greater departure from a market system

• because the United States places less emphasis on encouraging competition

• because the United States supports less investment for infrastructure development

Which example BEST characterizes these economies? Command Economy — Zimbabwe’s formal labor market is not functioning due to the government’s failed economic policies and continuing control. Labor regulations are not enforced effectively. Market Economy — Individuals and businesses within the United States have, with minimal government interference, the freedom to choose among an array of goods and services according to their tastes and preferences.

• The United States government regulates industry while the Zimbabwean government owns the means of production.

• The United States promotes diversity in investments while Zimbabwe focuses on a single commodity.

• Zimbabwe produces natural resources while the United States relies on importing natural resources.

• Zimbabwe’s government supports failing businesses while the United States refuses to help unsuccessful businesses.