A.   a computer

B.   toll roads

C.   the interstate highway system

D.   an iPhone

A.   high; and has remained high

B.   low; and has remained low

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

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

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

A.   the minimum wage is indexed to inflation.

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

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

D.   the minimum wage is not indexed to inflation.

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

B.   unsanitary practices at meatpacking plants.

C.   violent suppression of labor unions by big business.

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

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

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

C.   They help promote economic growth through fostering innovation.

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

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

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

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

D.   There is no longer any federal minimum wage.

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

B.   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.

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

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

A.   Federal Deposit Insurance Corporation

B.   Federal Reserve Board

C.   U.S. Department of Treasury

D.   Office of Management and Budget

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

B.   keeping interest rates at the same level.

C.   aggressively raising interest rates.

D.   aggressively lowering interest rates.

A.   Monetary; interest groups

B.   Fiscal; loopholes

C.   Redistributive; tariffs

D.   Antitrust; monopolies

A.   progressive; regressive

B.   regressive; regressive

C.   progressive; progressive

D.   regressive; progressive

A.   farm price supports

B.   both farm price supports and Medicare

C.   defense spending

D.   Medicare

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

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

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

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

A.   fiscal policy; monetary policy

B.   redistributive policy; regulatory policy

C.   monetary policy; fiscal policy

D.   regulatory policy; redistributive policy

A.   regulates; redistributes

B.   redistributes; regulates

C.   spends; brings in in revenue

D.   brings in in revenue; spends

A.   during election years.

B.   during economic downturns and recessions.

C.     

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

E.   during times of war.

A.   antitrust policy.

B.   monetary policy.

C.   progressive policy.

D.   deregulation.

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

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

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

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.     

A.     

B.   rational expectations

C.   the Prisoner’s Dilemma

D.   the invisible hand

E.   trickle-down economics

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

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

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

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

A.   laissez-faire

B.   Keynesian

C.   supply-side economic

D.   neo-Malthusian

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

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

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

A.   1970s.

B.   1980s.

C.   1990s.

D.   1950s.

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

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

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

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

A.   gross domestic product.

B.   monetary fund.

C.   inflation index.

D.   consumer price index.

A.   opportunity costs.

B.   indexing.

C.   inflation.

D.   deflation.

A.   prohibit workers from forming unions.

B.   establish a national minimum hourly wage.

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

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

A.   promoting economic self-reliance

B.   encouraging investment in businesses abroad

C.   reducing imports from foreign economies

D.   stimulating economic growth

A.   dependent on labor unions for stability.

B.   defined by peaceful negotiations.

C.   stable.

D.   among the most violent in the world.

A.   public goods

B.   supply-side economics

C.   public policies

D.   redistributive actions

A.   promoting economic interdependence

B.   ensuring full employment

C.   promoting stable markets

D.   promoting international balance of trade

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.   America has long been a hub of tech-driven productivity, though that has shifted since the 1980s into more of a manufacturing-driven 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.   American has consistently driven its economic growth from the agricultural sector, which remains the largest factor in the country’s economy.

A.   Article I, Section 4.

B.   the Tenth Amendment.

C.   Article II, Section 4.

D.   Article I, Section 8.

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

B.   payment rate on the national debt.

C.   interest rate on loans between banks.

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

A.   5%

B.   30%

C.   60%

D.   99%

A.   capital gains tax.

B.   tariff.

C.   value-added tax.

D.   tax expenditure.

A.   transgressive

B.   progressive

C.     

D.   regressive

E.   capital gains

A.   progressive

B.   capital gains

C.   regressive

D.   transgressive

A.   control mandatory spending.

B.   regulate monopolies.

C.   close tax loopholes.

D.   control discretionary spending.

A.   earned income tax credit.

B.   subsidy.

C.   earmark.

D.   tax expenditure.

A.   They have become less progressive over time.

B.   They have become more progressive over time.

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

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

A.   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.

B.   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.

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

D.   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.

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

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

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

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

A.   Democrats favor deregulation more than Republican do.

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

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

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

A.   free trade.

B.   antitrust policy.

C.   contracting.

D.   regressive taxation.

A.   Lyndon Johnson

B.   Richard Nixon

C.   John Kennedy

D.   Ronald Reagan

A.   social democracy.

B.   Keynesianism.

C.   laissez-faire economics.

D.   monetarism.

A.   environmental groups.

B.   business organizations.

C.   labor unions.

D.   foreign nations.

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

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

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

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

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

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

C.   only to what the government spends on Medicare.

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

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.   provide subsidies to companies who hire previously unemployed workers.

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

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

A.   Obama in 2015

B.   Trump in 2017

C.   Clinton in 1998

D.   George W. Bush in 2009

A.   Keynesianism.

B.   socialism.

C.   laissez-faire capitalism.

D.   supply-side economics.

A.   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.

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, but polls also reveal very little support for cutting any specific government programs.

A.   laissez-faire capitalism

B.   Keynesianism

C.   fiscalism

D.   supply-side economics

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

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

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

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

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.   Progressive

B.   Distributive

C.   Regressive

D.   Redistributive

A.   public investment, government investment, and financial stability

B.   public investment, innovation, and a productive workforce

C.   foreign investment, productive workforce, and economic regulation

D.   domestic investment, foreign investment, and government regulation