Review - Part 15 The Economy. 1) Traditionally, the Republican Party has been viewed as favoring...

Review - Part 15

The EconomyThe Economy

1) Traditionally, the Republican Party has been viewed as favoring which of the following groups?

a. Big business

b. The poor

c. The middle class

d. African-Americans

e. Hispanics

1) Traditionally, the Republican Party has been viewed as favoring which of the following groups?

a. Big business

b. The poor

c. The middle class

d. African-Americans

e. Hispanics

2) Traditionally, the Democratic Party has been known as

a. Supporters of tax and spend philosophy

b. Supply-siders

c. Believers of trickle-down economics

d. Advocates of anti-regulation of the economy

e. Proponents of repeal of capital gains tax

2) Traditionally, the Democratic Party has been known as

a. Supporters of tax and spend philosophy

b. Supply-siders

c. Believers of trickle-down economics

d. Advocates of anti-regulation of the economy

e. Proponents of repeal of capital gains tax

3) All the following items are measures of the nation’s economy EXCEPT

a. The nation’s unemployment rate

b. The rise or fall of the Consumer Price Index

c. The amount of growth or decline in the Gross National Product

d. The amount of taxes corporations pay to the federal government

e. The rise or fall of the Gross Domestic Product

3) All the following items are measures of the nation’s economy EXCEPT

a. The nation’s unemployment rate

b. The rise or fall of the Consumer Price Index

c. The amount of growth or decline in the Gross National Product

d. The amount of taxes corporations pay to the federal government

e. The rise or fall of the Gross Domestic Product

4) Which of the following economic policies reflects imposed government economic mandates?

a. Distributive economic policy

b. Regulatory economic policy

c. Redistributive economic policy

d. Supply-side economic policy

e. Stimulus programs passed by Congress

4) Which of the following economic policies reflects imposed government economic mandates?

d. Supply-side economic policy

e. Stimulus programs passed by Congress

5) Which of the following strategies results in government giving benefits directly to the people?

d. Increased government regulations

e. Increasing the personal income tax

5) Which of the following strategies results in government giving benefits directly to the people?

d. Increased government regulations

e. Increasing the personal income tax

6) Which of the following strategies results in government taking money from one segment of the society and giving it back to a group in need?

c. Redistrubutive economic policy

d. Increasing research and development opportunities for business

e. Increasing price supports

6) Which of the following strategies results in government taking money from one segment of the society and giving it back to a group in need?

c. Redistrubutive economic policy

d. Increasing research and development opportunities for business

e. Increasing price supports

7) A primary way that the Federal Reserve regulates the money supply is when it

a. Votes to increase taxes

b. Votes to decrease taxes

c. Adjusts the discount rate

d. Adjusts the rate of inflation

e. Votes to increase price supports

7) A primary way that the Federal Reserve regulates the money supply is when it

a. Votes to increase taxes

b. Votes to decrease taxes

c. Adjusts the discount rate

d. Adjusts the rate of inflation

e. Votes to increase price supports

8) Supply-side economists urge

a. Government stimulation of the economy

b. Increased government spending for social programs

c. Increased government borrowing of money

d. Large tax cuts by the government

e. An increase of the management of the economy by the government

8) Supply-side economists urge

a. Government stimulation of the economy

b. Increased government spending for social programs

c. Increased government borrowing of money

d. Large tax cuts by the government

e. An increase of the management of the economy by the government

9) Which of the following presidents pursued a laissez-faire economic policy?

a. Theodore Roosevelt

b. Herbert Hoover

c. Franklin Roosevelt

d. Lyndon Johnson

e. Bill Clinton

9) Which of the following presidents pursued a laissez-faire economic policy?

a. Theodore Roosevelt

b. Herbert Hoover

c. Franklin Roosevelt

d. Lyndon Johnson

e. Bill Clinton

10) Which of the following laws was invoked in response to the air traffic controller strike in 1981?

a. Fair Labor Standards Act

b. Federal Labor Standards Act

c. Wagner Act

d. Norris-La Guardia Act

e. Taft-Hartley Act

10) Which of the following laws was invoked in response to the air traffic controller strike in 1981?

a. Fair Labor Standards Act

b. Federal Labor Standards Act

c. Wagner Act

d. Norris-La Guardia Act

e. Taft-Hartley Act

Explanation The Fair Labor Standards Act set a maximum work

week for employers engaged in interstate commerce. The Federal Labor Standards Act protected children from abuses in the workplace. The Wagner Act gave workers involved in interstate commerce the right to organize labor unions. The Taft-Hartley Act in addition to prohibiting federal employees the right to strike also outlawed the closed union shop and allowed state to adopt right to work laws.

11) Which of the following industries had major economic problems as a result of government deregulation?

a. The airline industry

b. The telephone industry

c. The savings and loan industry

d. The railroad industry

e. The cable television industry