Chapter 8
The Mode of Finance: Systems of Transfer
Test Bank
Multiple Choice Questions
1. What system of government does the United States use?
a. state-run government
b. federal government
c. feudalism
d. capitalism
2. Which of the following terms refers to the arrangements in which the federal
government makes grants to lower units of government with very few strings
attached?
a. general revenue sharing
b. block grants
c. centralization
d. decentralization
3. Which term describes a reaction to the centralizing trend of early grant policies?
a. centralization
b. devolution
c. decentralization
d. zeitgeist
4. Which group of conservatives wanted to cut welfare to reduce spending because
welfare was too generous in its support?
a. work-oriented reformers
b. ideological critics
c. budget cutters
d. devolvers
5. Which group of conservatives wanted to support behavior incentives rather than
programs that supported immoral behavior?
a. work-oriented reformers
b. ideological critics
c. budget cutters
d. devolvers
6. Which of the following best explains why it is easier to ignore minority groups with a
smaller unit of government, such as a strong state government?
a. Minority groups don’t want a voice in the smaller government.
b. It is easier to make a majority within small groups, so minority groups are
often left out.
c. Minority groups have very little sway in small governments because they do
not have basic rights.
d. Very few majority groups are interested in minority groups.
7. Which of the following best explains the divide in the U.S. government’s power?
a. unilaterally and vertically
b. bilaterally
c. horizontally and vertically
d. bilaterally tiered
8. Which of the following best describes how block grants give more power to state and
local governments?
a. Block grants allow the specific programs the leeway to use the money as they
see fit.
b. Block grants are used only for state-specific purposes such as highways and
state parks.
c. Block grants offer local officials the chance to apply the money to community
development.
d. Block grants are used to give more money to state schools and hospitals
within major cities.
9. Which of the following scenarios best describes how conservatives prefer that
government funds be spent?
a. Government money would be spent on medical research for cancer and other
major illnesses.
b. Government money would be spent on welfare programs for unwed mothers
and other poverty groups.
c. Government money would be given to welfare programs to spend as they see
fit.
d. Government money would be given to state programs to use for incentive
programs.
10. Which of the following scenarios best describes how liberals prefer that government
funds be spent?
a. Government money would be given directly to the poor, homeless, and
elderly.
b. Government money would be given to welfare programs to help all people in
need.
c. Government money would be given to state-run facilities for research and
development.
d. Government money would be spent on local hospitals, schools, and job
training.
Short Answer Questions
1. Why did grants become less categorical and more broad in their purpose? How does
this decentralize the government?
2. What moralistic “personal responsibility” messages does TANF include? Explain how
this is a shift to a more conservative view of government.
3. How has TANF, among other policies, helped reduce the number of welfare cases in
the last decade? Explain with a real–life example.
4. Show a real-life example of how smaller units of government tend to alienate
minority groups. What is the reason behind this?
5. Why was there a shift concerning the centralization of welfare? What social concerns
were key in changing the state of the welfare system?
6. Create a policy similar to a “family cap.” How does it promote the ideals of
the responsibility agenda?
Bloom’s Level: Evaluate
Essay Questions
1. Why are welfare programs focusing on full-time jobs rather than job preparation?
What are the penalties if a person on welfare loses his or her job? How is
this indicative of the responsibility agenda in welfare reform?
2. Why did the government discontinue the open-ended matching of AFDC? What
help do states now receive from the federal government? Are these as effective
as the open-ended matching?
3. Create a policy that follows the new decentralized and responsibility trends in the
welfare system. How would this policy be an incentive for people to work? Are
there any problems that you foresee?
4. Create an argument concerning U.S. immigrants and social policy explaining why
immigrants should or should not receive federal assistance from the government.
Use two examples to make your argument stronger. Does your viewpoint coincide
with centralized or decentralized ideals?