DEVRY POLI 330 WEEK 6 QUIZ – NEW 2017

IF You Want To Purchase A+ Work Then Click The Link Below  , Instant Download

http://www.acehomework.net/?download=devry-poli-330-week-6-quiz-new-2017

If You Face Any Problem E- Mail Us At whisperhills@gmail.com

Chapter 16-    Political Economy

MULTIPLE-CHOICE QUESTIONS

1. Radicals use the term “political economy” instead of __________ to describe their critique of capitalism and the inequitable distribution of wealth among nations.

1. A) Marxism
2. B) laissez-faire
3. C) public-choice
4. D) Keynesian

2. Identify the United States presidential candidate who famously used the slogan, “It’s the economy, stupid!”

1. A) Ronald Reagan
2. B) Walter Mondale
3. C) Bill Clinton
4. D) Bob Dole

3. John McCain lost the 2008 presidential race in part because voters blamed Republicans of the previous administration for __________.

1. A) the financial meltdown
2. B) the September 11th attacks
3. C) the BP oil spill
4. D) Hurricane Katrina

4. Describe British economist John Maynard Keynes’ proposal to cure economic depressions.

1. A) Keynes suggested infusing the economy with government funds to promote spending.
2. B) Keynes advocated for “trickle down” economic policies.
3. C) Keynes argued for stronger stimulus packages to corporations and small businesses.
4. D) Keynes proposed to cure depressions by dampening the swings of the business cycle.

5. After World War II, conservative economists such as Friedrich Hayek and Milton Friedman sidelined Keynesianism with a __________ theory based on the original supply and demand of Adam Smith.

1. A) forward-looking
2. B) Marxist
3. C) neoclassical
4. D) nineteenth-century

6. Early twentieth-century European governments subscribed to __________ doctrines, generally keeping their hands away from the economy.

1. A) classic liberal
2. B) inflationary
3. C) neoclassical
4. D) Smithian

7. Describe Aristotle’s view of government, society and the economy.

1. A) He understood them as maintaining a symbiotic relationship.
2. B) He viewed them all as a single entity.
3. C) He thought they exhibited an antagonistic relationship.
4. D) He felt they functioned as mutual drains on one another.

8. Characterize President Bush’s favored economic policy of pumping billions of federal dollars into shaky banks and firms.

1. A) Smithian
2. B) Marxist
3. C) Keynesian
4. D) Millian

9. How do Keynesian economic policies differ from the traditional laissez-faire policies developed by Adam Smith?

1. A) Laissez-faire advocates for “cutthroat” capitalism, while Keynesian policies seek to spread wealth equally among a nation’s citizens.
2. B) Keynesian economics advocate for increased government control of economics, while traditional laissez-faire argues for a hands-free approach.
3. C) Smithian policies advocate for increased spending and stimuli for government-run businesses, while Keynesian economics argues for a hands-free approach.
4. D) The more liberal Smithian economies distribute wealth more evenly among society, while Keynesian economics tends to distribute wealth among the top one percent.

10. Describe how today’s conservatives use the term “political economy.”

1. A) Conservatives use the term to try to get back to the pure market system advocated by Adam Smith.
2. B) Conservatives understand the term within the context of Machiavelli’s The Prince.
3. C) Conservatives veer toward John Stuart Mill’s usage, which advocated utilitarianism.
4. D) Conservatives take a neo-utilitarian approach, hoping to benefit the weakest members of society.

11. During the Vietnam War, too much money chased too few goods, the classic definition of __________.

1. A) a tax hike
2. B) fixed rate exchange
3. C) demand-pull inflation
4. D) imbalance of payments

12. Why was President Johnson reluctant to request a tax increase to pay for the Vietnam War?

1. A) He felt it was an unjust and emotionally taxing conflict.
2. B) He had just gotten a tax cut through Congress in 1964.
3. C) He wanted to avoid blame for a war he knew the U.S. couldn’t win.
4. D) He saw U.S. involvement as the fault of the Kennedy administration.

13. The 1973 Mideast war allowed members of the Organization of Petroleum Exporting Countries (OPEC) to __________.

1. A) sell to nations in Eastern Europe
2. B) export to Japan and China
3. C) quadruple oil prices
4. D) keep oil prices down

14. During the 1970s critics developed this new term to describe inflation with stagnant economic growth.

1. A) Growth Slope
2. B) Quagmire
3. C) Stagflation
4. D) Recession

15. President Jimmy Carter attempted to stimulate the economy, but this made inflation worse. This led him to __________.

1. A) lose the 1980 election
2. B) slash prices of corn and soybeans
3. C) subsidize major oil companies
4. D) increase the national deficit

16. Map analysis suggested that Pennsylvania’s Perot vote in 1996 came from __________.

1. A) wealthy business men in Pittsburgh and Philadelphia
2. B) alienated people who typically do not vote
3. C) left-leaning independents in urban areas
4. D) conservatives fed up with Republican Party rhetoric

17. Interpret the origin of President Clinton’s budget surplus from 1997-2000.

1998. A) The surpluses primarily resulted from budget cuts instigated by the Clinton administration from 1994-1998.
1999. B) President Clinton created the surplus through “trickle-down” policies, stimulating growth.
2000. C) Offshoring led to lower production costs for businesses and thus created revenue.
2001. D) The surpluses were largely the result booms in the high-tech and investment industries, generating higher tax revenues.

18. Explain the primary source of recent cuts to the number and pay of American blue-collar manufacturing jobs.

1. A) Many such jobs have been outsourced to East Asia, where production costs are low.
2. B) American manufacturing jobs wax and wane with bubbles in the financial industry.
3. C) Blue-collar workers have traditionally depended on manufacturing industries, now in decline due to technological innovations.
4. D) More and more jobs are rendered obsolete with increases in computerized and robotic manufacturing.

19. Analyze the role of “animal spirits” on financial bubbles.

1. A) Banks produce bubbles by purchasing property at incredibly low rates and reselling that property to unsuspecting investors.
2. B) Financial markets tend to produce “bubble” investments that let people ignore risk, leading to alternating manias and panics.
3. C) The finance industry experiences massive eruptions of wealth that coincide with booms in other industries.
4. D) Wall Street functions on an intuitive basis, as investors cannot predict the value of volatile stocks.

20. Examine the outcome of recent spending cuts and the tax hikes on the wealthiest one percent of Americans, instigated by the Obama administration.

1. A) Middle class Americans benefitted from lower taxes and more jobs.
2. B) The compromise satisfied few and “kicked the can down the road” for likely repeats every few months.
3. C) Angry Republicans struck back during the following fiscal cliff, creating gridlock and threatening government shutdown.
4. D) Democrats were satisfied with the cuts and tax hikes, but Republicans were left with much to explain to their wealthy constituents.

21. Investigate the possible outcome of sequestration had it taken place in 2013.

1. A) Spending cuts would have pulled from social welfare programs, allowing Republicans to reform entitlements.
2. B) The defense budget would have taken a major hit, as increased spending and decreased taxes led the government to seek investments elsewhere.
3. C) New tax hikes would have taken money from the ultra-rich and redistributed it among the working class.
4. D) The sudden tax increases and simultaneous spending cuts would likely have produced a “double-dip” recession just as the U.S. was coming out of the first.

22. What was the poverty line in 2012?

1. A) $14,505
2. B) $17,060
3. C) $23,050
4. D) $26,750

23. U.S. federal expenditures mandated by law, such as Social Security and Medicare, are referred to as __________.

1. A) privileges
2. B) entitlements
3. C) benefits
4. D) subsidies

24. Conservatives hold that Johnson’s Great Society was a waste of money, locking recipients into __________ and encouraging a subculture of drugs and crime.

1. A) entitlement benefits
2. B) perpetual subsidies
3. C) social safety nets
4. D) welfare dependency

25. What event is largely considered responsible for deterring Johnson’s War on Poverty?

1. A) Great Society
2. B) Vietnam War
3. C) Middle-class entitlements
4. D) Tax expenditures

26. Between 1965 and 1973, the percentage of Americans living below the poverty line __________.

1. A) doubled
2. B) greatly decreased
3. C) slightly increased
4. D) rapidly increased

27. Most liberals feel that the poverty line is _________.

1. A) reasonable
2. B) disproportionate
3. C) too high
4. D) too low

28. According to the U.S. Labor Department, what determines the “poverty line”?

1. A) The poverty line is three times a minimal food budget for nonfarm families of four.
2. B) The poverty line is twice the minimal food budget plus $400 for lodging.
3. C) The poverty line is three times the city minimal lodging budget.
4. D) The poverty line is four times the minimal living expenses for an urban family of five.

29. Since the 1950s, the American unionized workforce has declined from 40% to __________.

1. A) 7%
2. B) 16%
3. C) 24%
4. D) 33%

30. Analyze the role of “derivatives” in the recent housing market bubble.

1. A) “Deriving” their value from real estate speculation, derivatives created a volatile value system.
2. B) Derivatives fluctuate widely in value, which led many investors to buy, only to lose large sums upon downward fluctuation.
3. C) Derivatives became so complex that no one could understand them, which masked losses and made assets extremely difficult to evaluate.
4. D) Derivatives forced many banking institutions to sell or close, condensing the control of the finance industry into a few small hands.

31. Which U.S. president is responsible for implementing Food Stamps as a nationwide program?

1. A) John F. Kennedy
2. B) Lyndon B. Johnson
3. C) Richard Nixon
4. D) Jimmy Carter

32. In 1996, President Clinton signed a major welfare reform that __________.

1. A) ended the Aid to Families with Dependent Children program that provided federal matching funds to the states to help the poor, mostly single mothers
2. B) restructured the Food Stamps program to distribute aid only to citizens and families far below the poverty line
3. C) reduced funding to the Women, Infants, and Children (WIC) program, which provides healthy food options to mothers with young children
4. D) introduced healthcare reforms, ensuring that all U.S. citizens under 24 years of age would be covered

33. The 2010 healthcare reform, known officially as __________, does not go nearly as far as most European and Canadian medical insurance and lacks a “public” option.

1. A) the Federal Health and Welfare Act
2. B) Obamacare
3. C) the Affordable Care Act
4. D) the Medical and Dental Reform Act

34. Due to increased medical costs, Medicare recipients are required to contribute bigger __________ to hold down overuse.

1. A) contributions
2. B) subsidies
3. C) imbursements
4. D) copayments

35. The __________ administration simplified the Food Stamps program by eliminating the provision that recipients buy the stamps at a discount with their own money.

1. A) Kennedy
2. B) Johnson
3. C) Ford
4. D) Carter

36. Medical costs consume nearly __________ percent of the U.S. gross domestic product, most of it paid through government and private health insurance.

1. A) 11
2. B) 18
3. C) 22
4. D) 26

37. Identify the major critique of workfare programs.

1. A) They fail to adequately locate jobs for the people they train.
2. B) They leave the government with unnecessary deficits.
3. C) They are more expensive than traditional welfare programs.
4. D) They drain the resources of potential employers.

38. Which of the following is an increasing financial concern of the Medicare program?

1. A) The proportion of older people in American society is increasing steadily.
2. B) Every American citizen on reaching 65 obtains Medicare, regardless of class.
3. C) Economic inequality renders Medicare more necessary for some than for others.
4. D) Wealthy Americans are taking advantage of the Medicare system.

39. Analyze recent changes to the Food Stamps program.

1. A) The distribution of cash grants allows the program to be easily misused.
2. B) The updated debit card system makes the program more difficult to misuse.
3. C) Many recipients sell Food Stamps for 50 cents on the dollar in order to purchase drugs and alcohol.
4. D) The program allocates surplus government dairy to the poor, ameliorating milk and cheese inflation.

40. Differentiate between the rising costs of Medicare and Medicaid.

65. A) Medicare anticipates rising costs due to changing proportions of people over 65.
66. B) Medicaid expects rising costs due to looming financial busts.
67. C) Medicare plans to keep spending down by raising the eligibility age to 69.
68. D) Medicaid hopes to beat rising costs by adjusting the poverty level.

41. Many Americans think the federal budget goes primarily toward welfare, which is __________.

1. A) absolutely true
2. B) somewhat exaggerated
3. C) not at all the case
4. D) slightly offensive

42. According to political scientist Ira Sharkansky, “All modern states are welfare states, and all welfare states are __________.”

1. A) democratic
2. B) compassionate
3. C) bureaucratic
4. D) incoherent

43. Many conservative economists argue that some banks are __________, because they would topple the rest of the economy with them.

1. A) inherently successful
2. B) too big to fail
3. C) destined for profit
4. D) practically invincible

44. Theoretically, what are the consequences if the government assumes the burden of bad loans?

1. A) Citizens will default on their mortgages.
2. B) Banks will learn from their mistakes and pay back the burden with interest.
3. C) Ultimately, the government will profit.
4. D) Firms will be encouraged to continue their risky behavior.

45. Why are many politicians wary about limiting Social Security and Medicare expenses?

1. A) Many would be left without enough to support them.
2. B) Caps to these program would undermine the welfare state.
3. C) It can cost them votes.
4. D) Both are primary social safety nets.

46. What major 2008 event sparked debate concerning the government’s size and role?

1. A) Financial Crisis
2. B) Hurricane Katrina
3. C) War in Libya
4. D) Arab Spring

47. How does the American welfare state compare to those of other industrialized nations?

1. A) Much less is allocated to welfare in the United States.
2. B) Other nations allocate less to welfare than the United States.
3. C) The United States allocates about the same to welfare.
4. D) Few nations besides the United States maintain funds for welfare.

48. How might Americans’ reluctance toward entitlement programs benefit them in the long run?

1. A) Citizens will pay lower taxes, stimulating the economy via “trickle down” economics.
2. B) Entitlement programs are complex and inefficient; our government will save time and money by proceeding with caution.
3. C) Americans can justify raising the debt ceiling through entitlement programs, so long as they are wary of the choices they make.
4. D) Government subsidies to businesses, rather than spending on welfare programs, will help the United States generate revenue and reduce overall spending.

49. Compare American and Canadian views on the size of government.

1. A) Americans believe the government is too small, while Canadians feel that government intrudes on individual privacy.
2. B) Similar nations located in North America, both Americans and Canadians feel that government is too large.
3. C) Americans and Canadians generally agree that government should be larger, funding welfare programs such as Medicaid and Food Stamps.
4. D) Many Americans believe government is too large, while Canadians recognize that government has a pivotal role to play and accept higher taxes.

50. Investigate what historically happens to conservatives when firms are supposedly “too big to fail.”

1. A) Conservatives argue for expensive bail-out packages.
2. B) Most conservatives suggest letting the free market run its course.
3. C) Most argue against expensive stimulus packages.
4. D) They switch parties.

TRUE/FALSE QUESTIONS

51. The classical economists of the late eighteenth and nineteenth centuries—Adam Smith, David Ricardo, John Stuart Mill, and Karl Marx—all wrote on what they called socialist economies.

52. Radicals use the term “political economy” instead of “late capitalism,” which is a hard sell these days.

53. Many of today’s American welfare programs began during the 1960s, under Kennedy and Johnson.

54. Starting in the late 1950s, the United States spent more abroad than it sold, leading to large deficits.

55. Conservatives argue that high taxes encourage effort and investment.

56. Attempting to correct the imbalance of 1960s deficits, President Nixon cut the link between the dollar and gold.

57. Conservatives complain that the poverty line is set too low; it can take two to three times that amount to survive in big cities.

58. Despite its extensive welfare programs, New York City maintains a high degree of poverty.

59. President Clinton’s 1996 entitlement reforms gave welfare recipients two years to get off government assistance.

60. One major problem with Medicaid is the large amount of it that ends up in the hands of fraudsters.

FILL-IN-THE-BLANK

61. Conservatives champion Adam Smith for developing the __________ system.

62. During bad times, government used to increase aggregate demand through __________ on public works and welfare to make recessions shorter and milder.

63. The __________ agreement priced an ounce of gold at $35 and fixed other currencies in relation to the dollar.

64. Established by Nixon, the __________ exchange rate devalued the dollar by about one fifth.

65. Deficit, debt, and taxation problems came together at the start of 2013 in what was popularly called a __________.

66. Many conservatives argue that poor communities develop a culture of poverty that instills ___________, an indifference to providing for their families and futures.

67. Official poverty figures do not include __________ benefits, such as food stamps, transferred to the poor by government programs.

68. Considered by Carter but easily misused, __________ would have functioned as a replacement for food stamps.

69. Some analysts call the federal __________ the best welfare program because it encourages people to work their way out of poverty.

70. The government assumed responsibility for the ___________ of bad loans in 2008.

SHORT ANSWER QUESTIONS

71. Briefly, what is the relationship between politics and economy?

72. Explain the escalating inflation rate under the Johnson administration.

73. Differentiate between liberal and conservative definitions of “poverty.”

74. Critique President Carter’s attempts at welfare reform.

75. Analyze the American trend against creating new entitlement programs.

ESSAY QUESTIONS

76. Examine the fundamental differences between Smithian and Marxist economic theories. What is the government’s role in each? Where do you see each playing out in the American economy, and how does such implementation benefit or harm our economy? Provide examples.

77. Examine the government’s hand in fixed exchange and floating exchange rates as they relate to the Gold Standard. How did Nixon intervene in the free market? Was this intervention successful?

78. Illustrate conservative and liberal definitions of “poverty.” How do these understandings focus the way each party views the poor? And how do those understandings influence the creation of social welfare programs?

79. Examine the efficacy of workfare programs. What do such programs intend to accomplish? What are some criticisms against them? Cite specific examples.

80. Analyze the 2008 financial crisis. What was the conflict in issuing bailouts to large firms? How is this form of government welfare fundamentally different from entitlement programs? Which presents the greater moral hazard?