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Chapter 15 Vocabulary - Political Science: An Introduction

Total questions: 24

Worksheet time: 12mins

Name
Class
Date
1.

Define bailout

a)

Emergency government loan to save firm from collapse.

b)

Cutting government spending

c)

Influence of politics and economy on each other; what government should do in the economy.

d)

What a government tries to do; the choices it makes among alternatives

2.

Define austerity

a)

Emergency government loan to save firm from collapse.

b)

Cutting government spending

c)

Influence of politics and economy on each other; what government should do in the economy.

d)

What a government tries to do; the choices it makes among alternatives

3.

Define political economy

a)

Emergency government loan to save firm from collapse.

b)

Cutting government spending

c)

Influence of politics and economy on each other; what government should do in the economy.

d)

What a government tries to do; the choices it makes among alternatives

4.

Define public policy

a)

Emergency government loan to save firm from collapse.

b)

Cutting government spending

c)

Influence of politics and economy on each other; what government should do in the economy.

d)

What a government tries to do; the choices it makes among alternatives

5.

Define business cycle

a)

Tendency of economy to alternate between growth and recession over several years.

b)

Period of economic decline; a shrinking GDP.

c)

A general, overall rise in prices.

d)

“The Fed”; U.S. central bank that can raise and lower interest rates.

6.

Define recession

a)

Tendency of economy to alternate between growth and recession over several years.

b)

Period of economic decline; a shrinking GDP.

c)

A general, overall rise in prices.

d)

“The Fed”; U.S. central bank that can raise and lower interest rates.

7.

Define inflation

a)

Tendency of economy to alternate between growth and recession over several years.

b)

Period of economic decline; a shrinking GDP.

c)

A general, overall rise in prices.

d)

“The Fed”; U.S. central bank that can raise and lower interest rates.

8.

Define Federal Reserve

Board

a)

Tendency of economy to alternate between growth and recession over several years.

b)

Period of economic decline; a shrinking GDP.

c)

A general, overall rise in prices.

d)

“The Fed”; U.S. central bank that can raise and lower interest rates.

9.

Define balance of payments

a)

The value of what a country exports compared with what it imports.

b)

Dollar buys set amounts of foreign currencies.

c)

Dollar buys varying amounts of foreign currencies, depending on market for them.

d)

Combination of slow growth plus inflation in the U.S. economy in the 1970s.

10.

Define fixed exchange rate

a)

The value of what a country exports compared with what it imports.

b)

Dollar buys set amounts of foreign currencies.

c)

Dollar buys varying amounts of foreign currencies, depending on market for them.

d)

Combination of slow growth plus inflation in the U.S. economy in the 1970s.

11.

Define floating exchange rate

a)

The value of what a country exports compared with what it imports.

b)

Dollar buys set amounts of foreign currencies.

c)

Dollar buys varying amounts of foreign currencies, depending on market for them.

d)

Combination of slow growth plus inflation in the U.S. economy in the 1970s.

12.

Define stagflation

a)

The value of what a country exports compared with what it imports.

b)

Dollar buys set amounts of foreign currencies.

c)

Dollar buys varying amounts of foreign currencies, depending on market for them.

d)

Combination of slow growth plus inflation in the U.S. economy in the 1970s.

13.

Define deficit

a)

Spending more in a given year than you take in.

b)

Since 2002, common EU currency used in most of West Europe; value fluctuates but now worth around $1.10.

c)

The sum total owed by the federal government.

d)

U.S. firms producing overseas.

14.

Define euro

a)

Spending more in a given year than you take in.

b)

Since 2002, common EU currency used in most of West Europe; value fluctuates but now worth around $1.10.

c)

The sum total owed by the federal government.

d)

U.S. firms producing overseas.

15.

Define debt

a)

Spending more in a given year than you take in.

b)

Since 2002, common EU currency used in most of West Europe; value fluctuates but now worth around $1.10.

c)

The sum total owed by the federal government.

d)

U.S. firms producing overseas.

16.

Define offshoring

a)

Spending more in a given year than you take in.

b)

Since 2002, common EU currency used in most of West Europe; value fluctuates but now worth around $1.10.

c)

The sum total owed by the federal government.

d)

U.S. firms producing overseas.

17.

Define bubble

a)

Market that has gone too high.

b)

Periods of market boom in which greed trumps fear.

c)

Periods of market collapse in which fear trumps greed.

d)

U.S. federal expenditure mandated by law, such as Social Security and Medicare.

18.

Define manias

a)

Market that has gone too high.

b)

Periods of market boom in which greed trumps fear.

c)

Periods of market collapse in which fear trumps greed.

d)

U.S. federal expenditure mandated by law, such as Social Security and Medicare.

19.

Define panics

a)

Market that has gone too high.

b)

Periods of market boom in which greed trumps fear.

c)

Periods of market collapse in which fear trumps greed.

d)

U.S. federal expenditure mandated by law, such as Social Security and Medicare.

20.

Define entitlement

a)

Market that has gone too high.

b)

Periods of market boom in which greed trumps fear.

c)

Periods of market collapse in which fear trumps greed.

d)

U.S. federal expenditure mandated by law, such as Social Security and Medicare.

21.

Define tax expenditures

a)

Government subsidies through tax breaks.

b)

Stuck on welfare with no incentive to get off.

c)

Programs limiting the duration of welfare payments and requiring recipients to work or get job training.

d)

Shielding firms from the risky consequences of their behavior.

22.

Define welfare dependency

a)

Government subsidies through tax breaks.

b)

Stuck on welfare with no incentive to get off.

c)

Programs limiting the duration of welfare payments and requiring recipients to work or get job training.

d)

Shielding firms from the risky consequences of their behavior.

23.

Define workfare

a)

Government subsidies through tax breaks.

b)

Stuck on welfare with no incentive to get off.

c)

Programs limiting the duration of welfare payments and requiring recipients to work or get job training.

d)

Shielding firms from the risky consequences of their behavior.

24.

Define moral hazard

a)

Government subsidies through tax breaks.

b)

Stuck on welfare with no incentive to get off.

c)

Programs limiting the duration of welfare payments and requiring recipients to work or get job training.

d)

Shielding firms from the risky consequences of their behavior.