A.   an iPhone

B.   the interstate highway system

C.   a computer

D.   toll roads

A.   high; but declined by the mid-1980s and has remained low

B.   high; and has remained high

C.   low; and has remained low

D.   low; but increased by the mid-1980s and has remained high

A.   only the federal government sought to promote full employment.

B.   only state governments sought to promote full employment.

C.   both the federal government and the state governments sought to promote full employment.

D.   neither the federal government nor the state governments sought to promote full employment.

A.   the minimum wage is indexed to inflation.

B.   federal income taxes inevitably become more regressive over time.

C.   the minimum wage is not indexed to inflation.

D.   federal income taxes inevitably become more progressive over time.

A.   violent suppression of labor unions by big business.

B.   widespread use of child labor in coal mines and factories throughout the United States.

C.   unsanitary practices at meatpacking plants.

D.   control of politicians by corporate interests who run the political machines.

A.   They help promote full employment through government workplace grants.

B.   They help promote low inflation through management of the money supply.

C.   They help promote stable markets by reassuring investors of the rule of law.

D.   They help promote economic growth through fostering innovation.

A.   It is not indexed to inflation and has not been increased since 2009.

B.   Individuals must work at least 40 hours a week to qualify for the federal minimum wage.

C.   The Republican party lowered the minimum wage when it controlled the federal government in 2017.

D.   There is no longer any federal minimum wage.

A.   America’s immigration policy has ensured a supply of high-skill workers to help drive productivity and growth.

B.   Immigrant labor takes jobs that would otherwise go to Americans, thereby slowing down productivity and growth.

C.   Immigration has no measurable impact on productivity and growth.

D.   America has long had an open doors policy allowing any who are interested to immigrate; this has resulted in economic growth primarily in those areas along the Canadian and Mexican borders.

A.   U.S. Department of Treasury

B.   Office of Management and Budget

C.   Federal Deposit Insurance Corporation

D.   Federal Reserve Board

A.   aggressively lowering interest rates.

B.   aggressively raising interest rates.

C.   passing a budget with larger individual and corporate tax cuts.

D.   keeping interest rates at the same level.

A.   Antitrust; monopolies

B.   Monetary; interest groups

C.   Fiscal; loopholes

D.   Redistributive; tariffs

A.   regressive; regressive

B.   progressive; regressive

C.   regressive; progressive

D.   progressive; progressive

A.   Medicare

B.   both farm price supports and Medicare

C.   defense spending

D.   farm price supports

A.   facilitates exchanges of credit and uses monetary policies to fight inflation and deflation.

B.   provides independent analyses of budgetary and economic issues to support the congressional budget process.

C.   manages the federal government’s antiterrorism strategy, provides border security, and oversees immigration and customs enforcement.

D.   requires companies to inform buyers of investment risks and protects investors against fraud.

A.   regulatory policy; redistributive policy

B.   monetary policy; fiscal policy

C.   fiscal policy; monetary policy

D.   redistributive policy; regulatory policy

A.   brings in in revenue; spends

B.   spends; brings in in revenue

C.   redistributes; regulates

D.   regulates; redistributes

A.   during times of war.

B.   during economic downturns and recessions.

C.   during election years.

D.     

E.   during good economic periods, when inflation is a concern.

A.   monetary policy.

B.   deregulation.

C.   progressive policy.

D.   antitrust policy.

A.   It benefits only those who export goods, while punishing those who import them.

B.   Because the government loses revenue from conducting free trade, it must make that revenue up through the imposition of higher income taxes.

C.     

D.   While it reduces the prices of goods for consumers, it imposes costs on workers in the form of lost jobs or reduced wages.

E.   It has long been championed by the Democratic Party, but the Republican Party has always opposed it.

A.   rational expectations

B.     

C.   trickle-down economics

D.   the invisible hand

E.   the Prisoner’s Dilemma

A.   reducing the marginal rate of taxation will promote higher levels of work and investment.

B.   the government’s role in the economy should be limited to regulating the money supply.

C.   the best method of producing high levels of economic growth is to engage in high levels of government spending.

D.   the government should impose heavy tariffs on imported goods in order to protect domestic suppliers.

A.   Keynesian

B.   laissez-faire

C.   supply-side economic

D.   neo-Malthusian

A.   the federal government’s strategy of taking power away from state governments by imposing an increasingly large number of regulations on their behavior.

B.   the Democratic Party’s strategy of raising taxes on wealthy individuals in order to pay for social programs that benefit those at the lower end of the income distribution.

C.   Congress’s strategy of slowly reducing budget appropriations for unpopular programs over the course of many years rather than ending them immediately.

D.   the Republican Party’s strategy of reducing taxes and increasing deficits in order to win support for federal spending cuts.

A.   1990s.

B.   1970s.

C.   1980s.

D.   1950s.

A.   Unions are more powerful today than they had been in the past.

B.   While unions represent a lower share of the labor force, they have more power and influence than they used to.

C.   Unions represent a smaller share of the labor force and have less power and influence than they used to.

D.   While unions represent a higher share of the labor force, they have less power and influence than they used to.

A.   consumer price index.

B.   gross domestic product.

C.   monetary fund.

D.   inflation index.

A.   inflation.

B.   deflation.

C.   opportunity costs.

D.   indexing.

A.   prohibit workers from forming unions.

B.   limit the amount of money labor unions and corporations could donate to political parties.

C.   oversee union elections and collective bargaining between labor and industry.

D.   establish a national minimum hourly wage.

A.   promoting economic self-reliance

B.   encouraging investment in businesses abroad

C.   stimulating economic growth

D.   reducing imports from foreign economies

A.   dependent on labor unions for stability.

B.   defined by peaceful negotiations.

C.   stable.

D.   among the most violent in the world.

A.   redistributive actions

B.   public policies

C.   supply-side economics

D.   public goods

A.   promoting international balance of trade

B.   promoting economic interdependence

C.   ensuring full employment

D.   promoting stable markets

A.   Much of America’s growth in the 1800s was driven by its abundant natural resources, but today it is driven much more by America’s success in the technology fields.

B.   American has consistently driven its economic growth from the agricultural sector, which remains the largest factor in the country’s economy.

C.   In the nation’s beginning it was a service-driven economy, though in the twentieth century and especially in the twenty-first, it has relied more on industry to drive growth.

D.   America has long been a hub of tech-driven productivity, though that has shifted since the 1980s into more of a manufacturing-driven economy.

A.   Article I, Section 8.

B.   Article I, Section 4.

C.   Article II, Section 4.

D.   the Tenth Amendment.

A.   payment rate on the national debt.

B.   percentage of federal spending that is made up of “uncontrollables,” budget items that cannot be controlled through the regular budget process.

C.   congressionally determined limit on the amount of national debt that can be issued by the U.S. Treasury.

D.   interest rate on loans between banks.

A.   5%

B.   60%

C.   30%

D.   99%

A.   value-added tax.

B.   tariff.

C.   capital gains tax.

D.   tax expenditure.

A.   capital gains

B.   regressive

C.   progressive

D.   transgressive

E.     

A.   transgressive

B.   progressive

C.   regressive

D.   capital gains

A.   regulate monopolies.

B.   control mandatory spending.

C.   close tax loopholes.

D.   control discretionary spending.

A.   earned income tax credit.

B.   tax expenditure.

C.   subsidy.

D.   earmark.

A.   They have become more progressive over time.

B.   They became more progressive until the 2017 tax cuts, at which point the trend began to reverse.

C.   They have become less progressive over time.

D.   They became less progressive until the 2017 tax cuts, at which point the trend began to reverse.

A.   Income tax rates have generally been stable throughout the country’s history, only changing by a percentage point here or there.

B.   Introduced as part of the Bill of Rights, the income tax has long been the foundation of the American federal government’s revenues, though it is less used today than it once was.

C.   First introduced in the early 1900s, it became a tax that most households paid during World War II. It has become less progressive in the last 40 years than it was during the early years of its use.

D.   The income tax was introduced during the Civil War and entered widespread use shortly thereafter. It used to be much more regressive, though recent tax law changes have made it more progressive in its effects.

A.   Net interest on the debt, then mandatory programs, then discretionary programs.

B.   Discretionary programs, then mandatory programs, then net interest on the debt.

C.   Mandatory programs, then discretionary programs, then net interest on the debt.

D.   Net interest on the debt, then discretionary programs, then mandatory programs.

A.   The country has long been opposed to government regulation, with very few new regulations being put in place since the Civil War.

B.   Deregulation tends to occur during times of economic recession and depression.

C.   The trend since the 1980s has been toward the federal government deregulating many different areas of the economy.

D.   Democrats favor deregulation more than Republican do.

A.   antitrust policy.

B.   free trade.

C.   contracting.

D.   regressive taxation.

A.   Lyndon Johnson

B.   John Kennedy

C.   Richard Nixon

D.   Ronald Reagan

A.   laissez-faire economics.

B.   social democracy.

C.   monetarism.

D.   Keynesianism.

A.   business organizations.

B.   foreign nations.

C.   labor unions.

D.   environmental groups.

A.   the economy of size shows that monopolies are the most efficient way to distribute goods throughout a national marketplace.

B.   government can rectify a falling economy by regulating the money supply.

C.   government can pull an economy out of a recession by stimulating demand and creating a cycle of increased production and jobs.

D.   government regulations during economic depressions must be lifted because they destroy the already-slim profit margin.

A.   to everything on which the government spends money outside of defense and mandatory programs such as Social Security and Medicare.

B.   to everything on which the government spends money outside of defense.

C.   only to what the government spends on Medicare.

D.   only to what the government spends on Social Security.

A.   limit the amount of payroll taxes that can be taken out of the checks of full-time employees to a certain percentage of their income.

B.   forbid employment discrimination on the basis of race, ethnicity, and gender.

C.   guarantee that a worker does not have to belong to a union or pay union dues as a condition of employment.

D.   provide subsidies to companies who hire previously unemployed workers.

A.   Obama in 2015

B.   Clinton in 1998

C.   George W. Bush in 2009

D.   Trump in 2017

A.   laissez-faire capitalism.

B.   Keynesianism.

C.   supply-side economics.

D.   socialism.

A.   A majority of Americans regularly say they would prefer a smaller government with fewer services, but polls also reveal very little support for cutting any specific government programs.

B.   A majority of Americans regularly say they would prefer a larger government with more services, but polls also reveal very little support for increasing spending on any specific government program.

C.   A majority of Americans regularly say they would prefer a larger government with more services, and polls also reveal strong support for increasing spending on nearly every government program.

D.   A majority of Americans regularly say they would prefer a smaller government with fewer services, and polls also reveal strong support for cutting nearly every government program.

A.   Keynesianism

B.   laissez-faire capitalism

C.   fiscalism

D.   supply-side economics

A.   The revenue that is raised from it tends to be spent on progressive goals.

B.   The more income people make, the higher a tax rate they have to pay on that income.

C.   The more income people make, the lower a tax rate they have to pay on that income.

D.   The income tax charges a flat tax rate regardless of income, which is more equitable.

A.   has remained constant since 1960.

B.   has grown dramatically since 1960.

C.   decreased between 1960 and 1990 but has increased dramatically since 1990.

D.   increased between 1960 and 1990 but has decreased dramatically since 1990.

A.   Regressive

B.   Distributive

C.   Progressive

D.   Redistributive

A.   foreign investment, productive workforce, and economic regulation

B.   public investment, government investment, and financial stability

C.   public investment, innovation, and a productive workforce

D.   domestic investment, foreign investment, and government regulation