Economics on the United States History Test in Ten Minutes

The video explores two major economic philosophies in the U.S.: laissez-faire and Keynesian economics. Laissez-faire promotes minimal government intervention, allowing supply and demand to dictate the market, historically leading to rapid industrialization but also social issues. Trickle-down economics, a form of laissez-faire, suggests aiding the wealthy to stimulate economic growth. In contrast, Keynesian economics advocates for government intervention and deficit spending to stimulate the economy, as seen in FDR's New Deal and Obama's policies. The video highlights the ongoing debate between these philosophies in American politics.

What is the primary characteristic of a laissez-faire economic system?

• Government heavily regulates the economy.

• The economy is based on barter and trade.

• The economy is driven by supply and demand with minimal government intervention.

• The government controls all major industries.

During the Gilded Age, what was a significant consequence of laissez-faire policies?

• Rapid industrialization with significant social costs.

• Improved working conditions for all workers.

• Increased government control over businesses.

• Decreased influence of big businesses on Congress.

Which president is most associated with the expansion of trickle-down economics?

• Herbert Hoover

• Franklin D. Roosevelt

• Ronald Reagan

• Barack Obama

What is the main idea behind trickle-down economics?

• Providing direct financial aid to the poor.

• Nationalizing major industries to control the economy.

• Increasing government spending on public services.

• Giving tax breaks to the wealthy to stimulate economic growth.

Keynesian economics advocates for what kind of government action during economic downturns?

• Allowing the market to self-correct without intervention.

• Stimulating the economy through government spending.

• Increasing taxes on the middle class.

• Reducing government spending to balance the budget.

Which of the following policies is an example of Keynesian economics?

• Reducing government involvement in the economy.

• Cutting taxes for the wealthy to encourage investment.

• Implementing social safety nets like Social Security.

• Deregulating industries to promote competition.

What is a key difference between laissez-faire and Keynesian economic philosophies?

• Laissez-faire relies on market self-regulation, while Keynesian advocates for government intervention.

• Laissez-faire supports government intervention, while Keynesian does not.

• Keynesian economics promotes minimal government spending.

• Keynesian economics focuses on reducing taxes for the wealthy.