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Chapter 17: Economic Policymaking

Multiple Choice

Multiple Choice

This activity contains 19 questions.

	According to monetarists, too much money and credit leads to   recession. unemployment. inflation. a budget surplus.

	Americans have always been suspicious of   laissez-faire economics. Keynesian economic policy. the free enterprise system. concentrated economic power.

	An example of a Keynesian economic policy is   borrowing funds to cover the federal deficit. allowing the free market to determine economic health. deregulating commerce and industry. creating government jobs to ease unemployment.

	Antitrust policy is implemented by the   Justice Department. General Service Administration. Small Business Administration. Patent Office.

	In America, solutions to many of the problems of a free enterprise economy have been achieved through   violence. the democratic process. business initiatives. economic upheavals.

	In the 1980s, corporate capitalism was characterized by   hard times. increased regulation. increased number of mergers. nationalism.

	James Madison and Karl Marx had in common a belief in   communism. capitalism. economic conflict as the root of politics. Keynesian economic philosophy.

	One of the most recent antitrust suits resulted in the breakup of   International Business Machines (IBM). General Motors. American Telephone & Telegraph (AT&T). Exxon.

	Our capitalist system presents a restraint on controlling the economy because   the private sector dominates the economy. big business dominates economic policy-making. no one can predict American consumer behavior. none of the above

	Our key measure of inflation is called the   Consumer Price Index (CPI). Gross National Product (GNP). Laffer Curve. National Inflation Index (NII).

	Perhaps the biggest change in economic policy-making over the past century has been the virtual 180-degree turn in public policy toward   consumers. business. labor unions. farmers.

	The agency that became a zealous defender of consumer interests in truth in advertising in the 1960s and 1970s was the   Small Business Administration. Food and Drug Administration. Consumer Product Safety Commission. Federal Trade Commission.

	The coalition behind the Republican Party is most likely to be concerned with   inflation. inflation and unemployment. unemployment. expanding government's role.

	The financial dealings of the Federal Reserve Board directly or indirectly affect   interest rates. inflation. availability of jobs. all of the above

	The first major consumer protection policy was the   Food and Drug Act. Consumer Product Safety Act. Consumer Credit Protection Act. Wagner Act.

	The impact of the federal budget taxes, spending, and borrowing on the economy describes   laissez-faire policy. monetary policy. fiscal policy. economic policy.

	The National Labor Relations Act   provided for a right-to-work law. enforced "yellow dog contracts." exempted unions from antitrust laws. guaranteed the right of collective bargaining.

	The official unemployment rate underestimates unemployment because it leaves out   minorities. people under the age of 18. discouraged workers. people looking for jobs.

	The Taft-Hartley Act   continued to guarantee unions the right of collective bargaining. gave the president a means to halt major strikes. permitted states to adopt right-to-work laws. all of the above

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