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CHAPTER 15 - Domestic and Economic Policy
1. The Gold Standard
a.
was a law that set the value of a currency in terms of a specified quantity of gold.
b.
was used by much of the world until the 1930s.
c.
was finally eliminated in the United States by Richard Nixon in 1971.
d.
is popular with some conservatives today.
e.
All of the above are true.
2. All of the following are true of domestic policy except
a.
domestic policy ranges from speed limits on interstate highways, to how best to protect our environment, to
what should be done about unemployment.
b.
domestic policy is formulated and implemented only by the federal government.
c.
regulatory policy is a type of domestic policy that seeks to define what is and is not legal.
d.
redistributive policy is a type of domestic policy that transfers income from certain individuals or groups to
others.
e.
Social Security is an example of domestic policy.
3. Ways in which issues come to be identified as problems include
a.
a crisis occurring.
b.
letters from the constituents to members of Congress.
c.
information provided by interest groups.
d.
reading the local newspaper.
e.
All of the above are true.
4. Agenda building
a.
is making Congress aware that a problem requires congressional action.
b.
may occur as a result of a crisis.
c.
may occur as a result of a technological change.
d.
may occur through a mass media campaign.
e.
All of the above are true.
5. The Patient Protection and Affordable Care Act
a.
requires services to be paid for by reducing the services to the rich to benefit the poor.
b.
allows for health coverage for unauthorized immigrants.
c.
is a massive overhaul of the nation’s healthcare funding system.
d.
was passed after two months of debate in Congress.
e.
All of the above are true.
6. Which of the following is a step in the policymaking process?
a.
policy implementation
b.
policy adoption
c.
policy formation
d.
agenda building
e.
All of the above are true.
7. Healthcare spending
a.
by the government in 2010 constituted about 50 percent of healthcare spending in the United States.
b.
by private insurers in 2010 made up about 30 percent of healthcare spending in the United States.
c.
through Medicare and Medicaid cover about one-third of all Americans.
d.
is higher in the United States as a percentage of the gross domestic product than many European countries.
e.
All of the above are true.
8. All of the following statements about the Medicare system are true except
a.
it pays for hospital and physician bills for almost all U.S. residents over sixty-five years of age.
b.
it helps pay for prescription drugs for those over sixty-five years of age.
c.
because of caps on reimbursements, some seniors refuse to participate in the program.
d.
it is funded out of general government revenues.
e.
it is funded by a special tax on wages and salaries.
9. Policy formulation is
a.
the process of making the government aware that an issue requires action.
b.
the discussion of proposals between governmental officials and the public.
c.
the process of deciding on a specific proposal.
d.
concerned with the implementation of policy by bureaucrats, the courts, police, and individual citizens.
e.
the process of examining how a policy has worked in practice.
10. All of the following are concerns about healthcare in the United States except
a.
in 2010, more than 49 million Americans did not have health insurance.
b.
in 2011, employer-provided health insurance cost $5,429 for single coverage and $15,073 for family coverage.
c.
younger workers find it harder to get coverage because they are employed in entry-level jobs without benefits.
d.
the cost of healthcare has been growing at a rapid pace, especially for those over age sixty-five.
e.
new medical technology and services have made healthcare less expensive.
11. The part of the policymaking process that involves choosing a specific policy from among the proposals that have
been discussed is known as
a.
policy formulation.
b.
policy implementation.
c.
policy adoption.
d.
policy choices.
e.
policy determination.
12. Policy implementation is
a.
concerned with how policies are carried out by bureaucrats, the courts, police, and individual citizens.
b.
the process of making the media aware of the issue.
c.
the discussion of proposals between governmental officials and the public.
d.
concerned with a specific strategy for the proposal.
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CHAPTER 15 - Domestic and Economic Policy
e.
when studies are conducted to see what happens after a policy is implemented.
13. Which is true of policy evaluation?
a.
If the policy is not working at the time of evaluation, then the policy is always repealed.
b.
It is the fourth step in policymaking and comes directly after policy adoption.
c.
When a policy has been in place for a while, evaluations are made inside and outside the government to
determine if the program is working.
d.
ObamaCare has had extensive policy evaluation to date.
e.
There is a time limit to the period of policy evaluation.
14. Regarding immigration, which of the following is true?
a.
Most immigrants come from Latin America or Asia.
b.
Hispanics have overtaken African Americans as the largest minority group in the United States.
c.
By 2050, collectively, minority groups will become the majority in the United States.
d.
If minority groups grow and form coalitions, their political power will also grow.
e.
All of the above are true.
15. Immigration
a.
at current rates will create a United States where the “white majority” no longer dominates American politics.
b.
is regarded by some as a plus for the United States because it offsets the low birthrate and aging population.
c.
helps expand the workforce and the taxes paid help to support government programs that benefit older
Americans.
d.
will result in jobs that pay lower wages for Americans with few skills, some argue.
e.
All of the above are true.
16. The hiring of illegal immigrants
a.
was made legal in 2010.
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b.
is very uncommon due to a very small illegal population.
c.
is very uncommon, despite a large illegal population.
d.
has been against the law since shortly after the Great Depression.
e.
has only been against the law since 1986.
17. Regarding immigration reform
a.
most Republicans are opposed to immigration reform.
b.
some pro-business conservatives do favor reform.
c.
most Democrats oppose reform.
d.
Options A and B are true.
e.
Options A, B, and C are true.
18. Americans' attitudes toward illegal immigrants and immigration, as reflected in opinion polling
a.
are overwhelmingly favorable toward illegal immigrants.
b.
are overwhelmingly unfavorable toward illegal immigrants.
c.
are mixed and sometimes contradictory.
d.
oppose states setting their own immigration policies.
e.
oppose police being able to question anyone about their immigration status.
19. In 2012, the Supreme Court ruled that Arizona could not
a.
make it a felony for illegal immigrants to work.
b.
arrest people without warrants just because they might be deportable under federal law.
c.
investigate the immigration status of people they stop for routine traffic violations.
d.
Options A and B are true.
e.
Options A, B, and C are true.
20. During his first campaign for president, Barack Obama proposed
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CHAPTER 15 - Domestic and Economic Policy
a.
English as the national language, to discourage illegal immigration.
b.
ending birthright citizenship for the children of illegal immigrants.
c.
a new minimum wage that would apply only to illegal immigrants.
d.
giving illegal immigrants a path to citizenship.
e.
Both A and B.
21. During President Obama's first term, _______________ were deported.
a.
almost no illegal immigrants
b.
only illegal immigrants from Latin America
c.
only adult illegal immigrants
d.
a number of illegal immigrants roughly consistent with prior administrations
e.
a record high number of illegal immigrants
22. In the 2012 elections, Latinos
a.
largely supported Democratic candidates, due to President Obama's plan to grant amnesty to all illegal
immigrants.
b.
largely supported Republican candidates, due to President Obama's record number of deportations.
c.
largely supported Democratic candidates, due to Republicans taking a hard line against immigration.
d.
turned out in record low numbers, due to disappointment with the Democratic administration's immigration
policies.
e.
Both A and C.
23. Explanations for the decline in crime rates since 1995 include all of the following except
a.
a booming economy.
b.
increased federal expenditures to combat crime.
c.
an increase in the prison population.
d.
the legalization of abortion.
e.
a lack of concern about crime among American citizens.
24. Which of the following is true?
a.
The United States experienced a great crime wave during the 1920s and early 1930s due to prohibition.
b.
Crime rates grew steadily in the twentieth century.
c.
According to historians, industrialization and urbanization contributed to the rise of crime.
d.
The Western part of the United States had less crime in the nineteenth century due to the fact that all citizens
carried guns.
e.
During the Civil War, there was little crime as everyone focused on the war effort.
25. Theft rates in the United States
a.
have declined substantially during the last two decades.
b.
are at their highest levels ever.
c.
have declined moderately since 1995 after rising rapidly for two decades.
d.
have remained constant for thirty years.
e.
have risen moderately since 1995 after declining rapidly for two decades.
26. Which of the following statements regarding incarceration in the United States is true?
a.
Many Americans believe that the best solution to the nation’s crime problem is to impose stiff prison
sentences on offenders.
b.
The number of incarcerated persons has grown rapidly in recent years.
c.
By 2013, U.S. prisons and jails held 2.4 million people.
d.
Males are ten times more likely to be incarcerated than women.
e.
All of the above are true.
27. The number of incarcerated persons in the United States
a.
includes an equal number of African American males and females.
b.
has increased requiring more prisons to be built.
c.
has declined in recent years.
d.
is greater in federal prisons than state prisons.
e.
is growing mostly due to arrests to prevent terrorism.
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CHAPTER 15 - Domestic and Economic Policy
28. The population group with the highest incarceration rate is
a.
non-Hispanic white men, ages 30–34.
b.
non-Hispanic African American men, ages 30–34.
c.
non-Hispanic Asian American men, ages 30–34.
d.
Hispanic men, ages 25–29.
e.
non-Hispanic African American women, ages 30–35.
29. The number of persons held in jail or prison for every 100,000 persons in a particular population group is known as
the
a.
prison rate.
b.
imprisonment numbers.
c.
capacity figures.
d.
incarceration rate.
e.
recidivism rate.
30. Which of the following statements regarding incarceration is true?
a.
Incarceration does not prevent average predatory street criminals from committing additional crimes once they
are out of prison.
b.
The majority of prisoners are incarcerated for their full sentence.
c.
Incarceration rates for African Americans are much lower than for any other ethnic group.
d.
The majority of people arrested and sent to jail have committed the crime of theft.
e.
Overcrowding is not an issue in prisons.
31. High prices of commodities like oil provide an incentive
a.
to produce more of it.
b.
for producers to slow production to boost prices higher.
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CHAPTER 15 - Domestic and Economic Policy
c.
to protect the environment.
d.
to develop new technology to extract the oil.
e.
Options A and D are true.
32. With regard to the issue of oil and energy
a.
the United States’ dependence on foreign oil is down sharply from just a few years ago.
b.
a new technology called fracking is allowing more oil to be extracted from domestic and Canadian sources.
c.
fracking can only extract oil, not natural gas.
d.
the United States gets nearly 80 percent of its oil and gas from foreign sources.
e.
Options A and B are true.
33. The process of injecting water, sand, and chemicals under high pressure into rocks to release oil and natural gas is
known as
a.
hydraulic fracturing.
b.
fracking.
c.
pressurized energy release.
d.
Both A and B.
e.
All of the above.
34. With regard to sources of energy in the United States
a.
wind and solar power make up about half of the country's energy.
b.
nuclear power plants are becoming more popular due to their low costs.
c.
coal is on the decline due to low natural gas prices.
d.
the country is becoming more dependent on foreign sources of oil.
e.
All of the above.
35. Ethanol is a fuel that is
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CHAPTER 15 - Domestic and Economic Policy
a.
made from corn.
b.
subsidized by the government.
c.
criticized as inefficient to produce.
d.
related to rising food costs.
e.
All of the above.
36. Opening new areas for oil and gas drilling has in recent years
a.
been strongly supported by the Republican Party.
b.
been strongly supported by the Democratic Party.
c.
faced controversy due to major oil spills.
d.
Both A and C.
e.
Both B and C.
37. All of the following are true of global warming except
a.
in the 1990s, scientists working on climate change began to conclude that the average world temperatures
would rise significantly in the twenty-first century.
b.
in an effort to stop global warming, the government allowed filling or dredging of wetlands without a permit.
c.
global warming has become a major political issue between conservatives and liberals.
d.
former Vice President Al Gore won a Nobel Peace Prize for his work on environmental issues.
e.
a major share of the American electorate does not believe that global warming is happening, or if it is
happening, that it is caused by human activities.
38. On the issue of global warning, many Americans
a.
do not believe it is occurring.
b.
do not believe that it is caused by human actions.
c.
believe that it is caused by the government.
d.
Both A and B.
e.
Both B and C.
39. Despite the lack of federal government action, in 2011
a.
CO2 emissions in the United States were down due to newer fuel-efficient cars.
b.
CO2 emissions in the United States were down due to newer power plants coming on line that used natural gas
instead of coal.
c.
CO2 emissions in the United States were down due to tougher emissions laws passed by states.
d.
CO2 emissions in the United States were down due to a colder winter.
e.
Options A and B are true.
40. As a result of the Supreme Court's ruling in Massachusetts v. EPA, all of the following are true except
a.
the EPA has lost some authority to regulate the emission of greenhouse gases.
b.
President Obama proposed EPA rules to cut emissions from existing plants by 30 percent.
c.
the EPA ruled that greenhouse gases threaten public health.
d.
the construction of coal-based powerplants became nearly impossible.
e.
All of the above are true.
41. Which of the following statements regarding unemployment is true?
a.
When unemployment is increasing, it is a sign of a recession.
b.
Unemployment figures that estimate the number of unemployed are prepared by the U.S. Department of
Labor.
c.
The published unemployment numbers fail to reflect the number of discouraged workers and “hidden
unemployed.”
d.
Unemployment is defined as the inability of those in the workforce to find a job.
e.
All of the above are true.
42. Which of the following is true?
a.
A recession is defined as two or more successive quarters in which the economy shrinks instead of grows.
b.
A recession is defined as two or more quarters in which unemployment rates are above 7 percent.
c.
Unemployment is defined as the total number of workers who are not in the workforce in any given quarter.
d.
Inflation is defined as a sudden rise in prices for hot commodities such as gasoline and electronics.
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e.
All of the above are true.
43. Keynesian economics advocates
a.
government control of markets.
b.
manipulation of monetary policy.
c.
the use of government spending and taxing to help stabilize the economy.
d.
acceptance of the theories of Adam Smith.
e.
laissez-faire economics.
44. Fiscal policy
a.
is popular with conservatives.
b.
is an approach to stabilize the economy through control of the money supply.
c.
is controlled by the Federal Reserve Bank.
d.
is an approach to stabilizing the economy through government spending and taxing.
e.
requires that, during economic slowdowns, the government tighten its belt on spending.
45. All of the following might be expected fiscal policies under a Keynesian approach except
a.
running a budget deficit.
b.
lowering taxes to increase public spending.
c.
expanding government spending through new projects.
d.
government borrowing to fund programs.
e.
cutting both taxes and spending.
46. The net public debt is defined as
a.
the total amount owed by all individuals, corporations, and governments in the United States.
b.
the total amount owed by the federal government to individuals, businesses, and foreigners.
c.
a percentage of the gross national product not to exceed 10 percent of all gross sales.
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d.
money not available for use.
e.
the total amount owed by the federal government to individuals, businesses, and foreigners, as well as
interagency borrowings within the government.
47. The Federal Reserve System was created by Congress to
a.
designate certain governmental powers as reserved for the federal government.
b.
provide a secondary military force in times of war.
c.
pay off the national debt.
d.
serve as the nation's central banking organization.
e.
None of the above.
48. Monetary policy includes
a.
using changes in the rate at which new money is put into circulation to alter national economic variables.
b.
using changes in the size of the federal budget deficit to alter national economic variables.
c.
regulating tax rates to ensure controlled growth and low inflation.
d.
the economic policies of the president and Congress.
e.
linkage of the consumer price index and the gross national product.
49. Tight monetary policy theory dictates that when the economy is faced with inflation, the government should
a.
increase the supply of credit.
b.
increase taxes.
c.
decrease the supply of credit.
d.
decrease taxes.
e.
take complete control of the economy.
50. A loose monetary policy is often enacted in order to
a.
fight inflation.
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CHAPTER 15 - Domestic and Economic Policy
b.
encourage economic growth
c.
reduce the supply of credit.
d.
raise the costs of credit.
e.
Both A and B.
51. Taxes are collected by
a.
the federal government.
b.
the state governments.
c.
the local governments.
d.
Both A and B.
e.
All of the above.
52. The highest rate of taxation that one pays on the last dollar he or she makes is called the
a.
progressive tax rate.
b.
regressive tax rate.
c.
marginal tax rate.
d.
tax liability rate.
e.
temporary tax rate.
53. In comparing the total amount of taxes collected as a percentage of gross domestic product
a.
Sweden’s rate is the lowest in the world.
b.
one of the countries with the highest rate is the United States.
c.
most countries in Europe have lower rates than the United States.
d.
the rate of the United States is around 25 percent.
e.
Options A and C are true.
54. Legal methods by which individuals and businesses reduce their tax liabilities are called
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CHAPTER 15 - Domestic and Economic Policy
a.
regressive taxes.
b.
black holes.
c.
loopholes.
d.
tax credits.
e.
None of the above.
55. Tax loopholes allow individuals and corporations to
a.
reduce their taxable income legally.
b.
choose the state to which they will pay taxes.
c.
register formal complaints to the Internal Revenue Service.
d.
pay taxes only on investment income.
e.
commit crimes without fear of incarceration.
56. With a progressive tax
a.
all taxpayers pay taxes at the same percentage rate.
b.
people with higher incomes pay taxes at a higher percentage rate.
c.
people with higher incomes pay taxes at a lower percentage rate.
d.
the tax burden consists mostly of property and sales taxes.
e.
tax rates increase by a set percentage every year.
57. _____________ is an example of a progressive tax, while ____________ is an example of a regressive tax.
a.
The Medicare tax; the state sales tax
b.
The Social Security tax; the state sales tax
c.
The state sales tax; the Social Security tax
d.
The Federal income tax; the Medicare tax
e.
None of the above.
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CHAPTER 15 - Domestic and Economic Policy
58. The federal income tax is an example of ____________, while the Social Security tax is an example of
______________.
a.
a progressive tax; a regressive tax
b.
a regressive tax; a progressive tax
c.
a sales tax; a regressive tax
d.
a progressive tax; a sales tax
e.
a progressive tax; a capital gains tax
59. Which of the following is not a regressive tax?
a.
Social Security tax
b.
Medicare tax
c.
state sales tax
d.
federal income tax
e.
local real estate tax
60. Because of the __________, the United States does indeed have a __________.
a.
income tax; progressive tax system
b.
income tax; regressive tax system
c.
property tax; progressive tax system
d.
Earned Income Tax Credit (EITC); regressive tax system
e.
sales tax; progressive tax system
61. Describe the measures in recent healthcare reform legislation that was passed by Congress, which takes effect in 2014.
62. Explain the stages of the policymaking process.
63. Discuss the Arizona immigration legislation. Why was it passed? What measures were struck down by the Supreme
Court and why?
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CHAPTER 15 - Domestic and Economic Policy
64. Assess the advantages and disadvantages of a nation having a substantial immigrant population.
65. Discuss the issue of incarceration rates in the United States and how they relate to the rates of crime in American
society.
66. Discuss the idea of energy independence and how or why the United States has moved in that direction in recent years.
67. Detail the efforts made during the Obama administration to address environmental problems and the controversy
surrounding such efforts.
68. Examine the federal budget deficit, why it occurred, and what measures should be taken to bring it down.
69. Explain the impact of Keynesian economics on fiscal policy in the United States.
70. Explain the difference between progressive and regressive taxes. Would we be better served by simply employing a
flat tax across the board?
