21. How did Bernie Madoff’s Ponzi scheme serve as a metaphor for the American economy?
a. The American economy’s growth was based on borrowing from others and spending money people did not
have.
b. Hard work and wise investments were key to the growth of the American economy.
c. The American economy did not grow because there was a lack of investors from the United States and
overseas.
d. The American economy could withstand significant changes to products in the market, as long as the
companies themselves remained solvent.
e. Open and honest communication between investors and companies was a key factor in stimulating
economic growth in America.
22. What was the result of Lawrence v. Texas?
a. The Supreme Court overturned the law on a procedural technicality, making sexual acts between persons of
the same sex legal.
b. The Supreme Court declared the criminalization of homosexual acts unconstitutional.
c. The Supreme Court upheld the constitutionality of state “religious liberty” laws.
d. The Supreme Court declared homosexual acts were unconstitutional.
e. The Supreme Court decided same-sex marriages were constitutional.
23. In 2008, testifying before Congress, Alan Greenspan, the former head of the Federal Reserve Bank.
a. argued that regulation would damage banks, Wall Street, and the mortgage market.
b. admitted that his conviction that free markets would produce the best results was flawed.
c. argued that the federal government should allow unregulated economic competition.
d. argued that banks and investment firms should regulate themselves.
e. called for deregulation and artificially low interest rates.
24. In 2008, what bank did the Bush administration allow to fail?
a. AIG
b. Citigroup