31 Jan too big to fail

Question 1

(TCO 7) Radicals use the term “political economy” instead of _____ to describe their critique of capitalism and the inequitable distribution of wealth among nations.

Marxism

laissez-faire

public choice

Keynesian

Question 2

(TCO 7) Early 20th-century European governments subscribed to _____ doctrines, generally keeping their hands away from the economy.

classic liberal

inflationary

neoclassical

Smithian

Question 3

(TCO 7) President Jimmy Carter attempted to stimulate the economy, but this made inflation worse. This led him to _____.

lose the 1980 election

slash prices of corn and soybeans

subsidize major oil companies

increase the national deficit

Question 4

(TCO 7) What event is largely considered responsible for deterring Johnson’s War on Poverty?

Great Society

Vietnam War

Middle-class entitlements

Tax expenditures

Question 5

(TCO 7) Analyze recent changes to the Food Stamp program.

The distribution of cash grants allows the program to be easily misused.

The updated debit card system makes the program more difficult to misuse.

Many recipients sell Food Stamps for 50 cents on the dollar in order to purchase drugs and alcohol.

The program allocates surplus government dairy to the poor, ameliorating milk and cheese inflation.

Question 6

(TCO 7) Differentiate between the rising costs of Medicare and Medicaid.

Medicare anticipates rising costs due to changing proportions of people over 65.

Medicaid expects rising costs due to looming financial busts.

Medicare plans to keep spending down by raising the eligibility age to 69.

Medicaid hopes to beat rising costs by adjusting the poverty level.

Question 7

(TCO 7) Why are many politicians wary about limiting Social Security and Medicare expenses?

Many would be left without enough to support them.

Caps to these programs would undermine the welfare state.

It can cost them votes.

Both are primary social safety nets.

Question 8

(TCO 7) How does the American welfare state compare to those of other industrialized nations?

Much less is allocated to welfare in the United States.

Other nations allocate less to welfare than the United States.

The United States allocates about the same to welfare.

Few nations besides the United States maintain funds for welfare.

Question 9

(TCO 7) Most liberals feel that the poverty line is _____.

reasonable

disproportionate

too high

too low

Question 10

(TCO 7) Many conservative economists argue that some banks are _____, because they would topple the rest of the economy with them.

inherently successful

too big to fail

destined for profit

practically invincible