A.   a computer

B.   the interstate highway system

C.   toll roads

D.   an iPhone

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

B.   low; and has remained low

C.   high; and has remained high

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

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

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

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

D.   only state governments sought to promote full employment.

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

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

C.   the minimum wage is indexed to inflation.

D.   the minimum wage is not indexed to inflation.

A.   violent suppression of labor unions by big business.

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

C.   unsanitary practices at meatpacking plants.

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

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

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

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.   There is no longer any federal minimum wage.

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

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

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

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

C.   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.

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

A.   Federal Reserve Board

B.   Federal Deposit Insurance Corporation

C.   Office of Management and Budget

D.   U.S. Department of Treasury

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.   Monetary; interest groups

B.   Antitrust; monopolies

C.   Fiscal; loopholes

D.   Redistributive; tariffs

A.   progressive; regressive

B.   regressive; regressive

C.   regressive; progressive

D.   progressive; progressive

A.   Medicare

B.   defense spending

C.   farm price supports

D.   both farm price supports and Medicare

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

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

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

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

A.   fiscal policy; monetary policy

B.   monetary policy; fiscal policy

C.   redistributive policy; regulatory policy

D.   regulatory policy; redistributive policy

A.   regulates; redistributes

B.   spends; brings in in revenue

C.   brings in in revenue; spends

D.   redistributes; regulates

A.   during economic downturns and recessions.

B.     

C.   during election years.

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

E.   during times of war.

A.   progressive policy.

B.   antitrust policy.

C.   monetary policy.

D.   deregulation.

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

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

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

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

E.     

A.   trickle-down economics

B.     

C.   the Prisoner’s Dilemma

D.   rational expectations

E.   the invisible hand

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

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

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

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

A.   Keynesian

B.   neo-Malthusian

C.   laissez-faire

D.   supply-side economic

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

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

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

A.   1990s.

B.   1970s.

C.   1950s.

D.   1980s.

A.   While unions represent a higher share of the labor force, they have less 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.   Unions are more powerful today than they had been in the past.

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

A.   gross domestic product.

B.   consumer price index.

C.   inflation index.

D.   monetary fund.

A.   opportunity costs.

B.   inflation.

C.   deflation.

D.   indexing.

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

B.   establish a national minimum hourly wage.

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

D.   prohibit workers from forming unions.

A.   reducing imports from foreign economies

B.   promoting economic self-reliance

C.   encouraging investment in businesses abroad

D.   stimulating economic growth

A.   stable.

B.   dependent on labor unions for stability.

C.   defined by peaceful negotiations.

D.   among the most violent in the world.

A.   redistributive actions

B.   supply-side economics

C.   public goods

D.   public policies

A.   promoting economic interdependence

B.   promoting international balance of trade

C.   promoting stable markets

D.   ensuring full employment

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

B.   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.

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

D.   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.

A.   Article II, Section 4.

B.   Article I, Section 8.

C.   the Tenth Amendment.

D.   Article I, Section 4.

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

B.   interest rate on loans between banks.

C.   payment rate on the national debt.

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

A.   60%

B.   99%

C.   30%

D.   5%

A.   tax expenditure.

B.   capital gains tax.

C.   tariff.

D.   value-added tax.

A.   progressive

B.   transgressive

C.   capital gains

D.     

E.   regressive

A.   regressive

B.   progressive

C.   capital gains

D.   transgressive

A.   close tax loopholes.

B.   regulate monopolies.

C.   control mandatory spending.

D.   control discretionary spending.

A.   earned income tax credit.

B.   earmark.

C.   tax expenditure.

D.   subsidy.

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

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 have become more progressive over time.

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

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

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

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

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

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

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

C.   Democrats favor deregulation more than Republican do.

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

A.   free trade.

B.   regressive taxation.

C.   antitrust policy.

D.   contracting.

A.   Richard Nixon

B.   Lyndon Johnson

C.   John Kennedy

D.   Ronald Reagan

A.   Keynesianism.

B.   social democracy.

C.   monetarism.

D.   laissez-faire economics.

A.   labor unions.

B.   business organizations.

C.   environmental groups.

D.   foreign nations.

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

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 rectify a falling economy by regulating the money supply.

A.   only to what the government spends on Medicare.

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

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

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

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

B.   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.

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

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

A.   Obama in 2015

B.   George W. Bush in 2009

C.   Clinton in 1998

D.   Trump in 2017

A.   Keynesianism.

B.   supply-side economics.

C.   socialism.

D.   laissez-faire capitalism.

A.   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.

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 smaller government with fewer services, but polls also reveal very little support for cutting any specific government programs.

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.   fiscalism

B.   supply-side economics

C.   laissez-faire capitalism

D.   Keynesianism

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

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

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

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

A.   has grown dramatically since 1960.

B.   has remained constant 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.   Redistributive

D.   Regressive

A.   domestic investment, foreign investment, and government regulation

B.   public investment, innovation, and a productive workforce

C.   public investment, government investment, and financial stability

D.   foreign investment, productive workforce, and economic regulation