UNITED STATES GOVERNMENT AND POLITICS
Section I
Time—22.5 minutes
30 Questions
Directions: Each of the questions or incomplete statements below is followed by five suggested answers or completions. Select the one that is best in each case and then place the letter of your choice in the corresponding box on the answer sheet.
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1. What tax is levied on employers and employees to pay for Social Security and Medicare?
a. AFDC
b. TANF
c. FICA
d. WIC
e. NAFTA
2. The Americans with Disabilities Act, which provides protections for the disabled, is an example of
a. state supremacy
b. horizontal federalism
c. affirmative action
d. dual federalism
e. a federal mandate
3. Which economists believe the government should never become involved in economic issues.
a. supply side
b. demand side
c. Keynesian
d. laissez-faire
e. Austrian School
4. Which of the following is NOT an example of nondiscretionary spending?
a. Aid to Families with Depend Children (AFDC)
b. diplomatic
c. military
d. a grant to build a new consolidated high school
e. trade
5. Giving state governments greater discretion in deciding how to achieve the specific goals of welfare reform is an example of
a. an unfunded mandate
b. implied powers
c. dual federalism
d. devolution
e. affirmative action
6. Which of the following is the best example of a categorical grant?
a. Money given to states for special education programs
b. Money given to individuals in the form of tax rebates
c. Money given to states unconditionally
d. Money given to states to spend at their discretion on transportation
e. Money given directly to private business for economic development
7. Federal budget entitlements refer to spending
a. to provide individual benefits established by legislation
b. by legislators on trips to home states to confer with constituents
c. by congressional staff while traveling on official business
d. on behalf of life, liberty, and the pursuit of· happiness
e. targeted to benefit residents of specific congressional districts
8. Which of the following statements best describes the relationship today between government and the economy in the United States?
a. The economy is largely self-regulating.
b. The government subsidizes economic interests but otherwise leaves them to operate as they please.
c. The government is the driving force in the U.S. economy; business has a secondary role.
d. The government has an important role in regulating and maintaining the U.S. economy.
e. The government owns most of the means of production in the United States.
9. When the Fed was created in 1913,
a. it had no role in the management of the nation's economy.
b. it was restricted to providing emergency loans to financial institutions.
c. it adhered to a strictly supply-side policy focus.
d. its primary economic management tool was to reduce inflation by restricting the money supply.
e. it was far more likely to increase the money supply by lowering interest rates than to restrict it by raising them.
10. Government benefits for business include all of the following EXCEPTa. low-interest loans and government-guaranteed loans.b. corporate tax breaks.c. a national transportation system.d. minimum-wage laws.e. a national education system.
11. Fiscal policy is a mechanism the government employs to influence the economy. Fiscal policy is based ona. the idea that a balanced budget is the key to a healthy economy.b. the money supply.c. the government's taxing and spending decisions.d. the importance of maintaining a 12-month (fiscal year) economic cycle.e. the projections of the Federal Reserve Board.
12. In John Maynard Keynes's demand-side economic theory, an economic recession can be shortened througha. government spending programs.b. the natural workings of the free-market system.c. a lowering of tariffs in the global economy.d. a determination on the part of government not to spend any more than it receives in taxes.e. tax cuts for the wealthy.
13. Supply-side economics, as implemented by President George W. Bush's administration, involveda. the supply component of the supply-demand equation.b. stressing the importance of tax cuts for businesses.c. stressing the importance of tax cuts for the wealthy.d. an increase in the size of the national debt.e. All these answers are correct.
14. Members of the Federal Reserve Boarda. serve for variable terms and are exposed to high levels of political pressure.b. have no power to refuse congressional requests for information.c. are appointed by the president and can be removed by the Senate.d. are appointed by Congress and can be removed by Congress.e. are appointed by the president and are not subject to removal.
15. The Progressive Era of government regulation focused ona. strengthening consumer protection by preventing credit agencies from gouging individuals with high levels of debt.b. bolstering worker safety by increasing the power of unions and forcing better safety practices on businesses.c. increasing environmental protection and strengthening the EPA.d. regulating troubled economic sectors, such as banking.e. stopping the unfair business practices of the new monopolies, such as the railroads.
16. The Federal Reserve controls the money supply through all of the following actions EXCEPTa. raising the cash reserve that member banks are required to deposit with the Federal Reserve.b. raising the interest rate that member banks are charged when they borrow from the Federal Reserve.c. lowering the cash reserve that member banks are required to deposit with the Federal Reserve.d. lowering the interest rate that member banks are charged when they borrow from the Federal Reserve.e. lowering the tax rate on individuals.
17. A major point of debate surrounding the Federal Reserve's role in economic policy isa. the Fed's political accountability.b. whether the president should be able to veto the Fed's decisions.c. the issue of competence.d. whether Congress should be able to reject the Fed's decisions.e. None of these answers is correct.
18. Which of the following is true regarding the Kyoto agreement and greenhouse gas emissions?a. The United States is the largest single producer of greenhouse emissions in the world, on a per-capita basis.b. President George W. Bush rejected the agreement.c. It was a multinational effort to reduce carbon emissions.d. The burden of addressing the global warming problem will fall unevenly on nations.e. All these answers are correct.
19. Which president's use of government policy as economic stimulus ushered in the modern era of U.S. government fiscal policy?a. Thomas Jeffersonb. Franklin Rooseveltc. Lyndon Johnsond. Woodrow Wilsone. William Clinton
20. If the economic problem is low productivity and high unemployment, the fiscal policy action on the demand side would be toa. increase taxes.b. cut business taxes.c. increase spending.d. decrease spending.e. None of these answers is correct.
21. Over the past forty years, the burden of federal taxation hasa. shifted from big business to small business.b. shifted from individuals to corporations.c. shifted from corporations to individuals.d. evened out between individuals and corporations.e. None of these answers is correct.
22. Which of the following is correct about environmental policy?a. The national parks are subject to a dual use policy of preservation, recreation, and exploitation of the rich natural resources.b. The Environmental Protection Agency was elevated to cabinet status in 1998 by President Clinton and the Republican Congress.c. Environmental regulation has done little to improve air and water quality.d. Policymakers always give more consideration to environmental protection than to economic development when the two conflict.e. None of these answers is correct.
23. The ______established minimum wages and constraints on the use of child labor.a. Securities and Exchange Act of 1934b. Banking Act of 1934c. Airlines Deregulation Act of 1977d. Fair Labor Standards Act of 1938e. Homestead Act of 1862
24. The highest rate of inflation (13 percent) since World War II occurred in ______.a. 1955b. 1963c. 1979d. 1991e. 2002
25. What was a major change brought about by the National Labor Relations Act of 1935?a. It established the national minimum wage.b. It broke up business monopolies in order to give workers more choice in employer.c. Workers were given the right to bargain collectively.d. It eliminated the ability of companies to bargain directly with unions.e. It reduced the ability of workers to go on strike indefinitely.
26. Which of the following government agencies regulates business competition?a. Federal Trade Commissionb. Interstate Commerce Commissionc. Antitrust Division of the Justice Departmentd. all of these: the Federal Trade Commission; the Interstate Commerce Commission; and the Antitrust Division of the Justice Departmente. None of these answers is correct.
27. About what percentage of the annual federal budget is accounted for by the interest paid on the national debt?a. 50%b. 5%c. 25%d. 15%e. 2%
28. Which of the following covers of hospitalization and nursing care for people 65 years old and older with optional extension of coverage for physician service. a. Medicareb. Medicaidc. National Healthcared. FICAe. NIH
29.The Voting Rights Act of 1965 has been put into question, specifically in regard to the formula establishing preclearance in what Supreme Court case? a. US v. Windsor b. US v. Calandrac. Marbury v. Madisond. Shelby County v Holdere. Swann v. Charolette-Mecklenburg
30. DOMA was ruled unconstitutional under the due process requirement in which Supreme Court case? a. US v. Windsor
b. US v. Calandra
c. Marbury v. Madison
d. Shelby County v Holder
e. Swann v. Charolette-Mecklenburg
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UNITED STATES GOVERNMENT AND POLITICS
SECTION II
Directions: You have 40 minutes to answer both of the following questions. Unless the directions indicate otherwise, respond to all parts of both questions. It is suggested that you take a few minutes to plan and outline each answer. Spend approximately half of your time (20 minutes) on each question. In your response, use substantive examples where appropriate. Make certain to number each of your answers as the question is numbered below.
FRQ 6 #2 & 02 #2
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