05 Jan The poverty line

Question 1

3 / 3 pts

(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

3 / 3 pts

(TCO 7) How do Keynesian economic policies differ from the traditional laissez-faire policies developed by Adam Smith?

Laissez-faire policies advocate for “cutthroat” capitalism, and Keynesian policies seek to spread wealth equally among a nation’s citizens.

Keynesian economics advocates for increased government control of economics, and traditional laissez-faire argues for a hands-free approach.

Smithian policies advocate for increased spending and stimuli for government-run businesses, and Keynesian economics argues for a hands-free approach.

The more liberal Smithian economies distribute wealth more evenly among society, and Keynesian economics tends to distribute wealth among the top 1%.

Question 3

3 / 3 pts

(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

3 / 3 pts

(TCO 7) Conservatives hold that Johnson’s Great Society was a waste of money, locking recipients into _____ and encouraging a subculture of drugs and crime.

entitlement benefits

perpetual subsidies

social safety nets

welfare dependency

Question 5

3 / 3 pts

(TCO 7) Which U.S. President is responsible for implementing the Food Stamp program nationwide?

John F. Kennedy

Lyndon B. Johnson

Richard Nixon

Jimmy Carter

Question 6

3 / 3 pts

(TCO 7) Medical costs consume nearly _____% of the U.S. gross domestic product, most of it paid through government and private health insurance.

11

18

22

26

Question 7

3 / 3 pts

(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

3 / 3 pts

(TCO 7) Compare American and Canadian views on the size of government.

Americans believe the government is too small, and Canadians feel that government intrudes on individual privacy.

America and Canada are similar nations located in North America, and both Americans and Canadians feel that government is too large.

Americans and Canadians generally agree that government should be larger, funding welfare programs such as Medicaid and Food Stamps.

Many Americans believe government is too large, and Canadians recognize that government has a pivotal role to play and accept higher taxes.

Question 9

3 / 3 pts

(TCO 7) According to the U.S. Labor Department, what determines the poverty line?

The poverty line is three times a minimal food budget for nonfarm families of four.

The poverty line is twice the minimal food budget plus $400 for lodging.

The poverty line is three times the city minimal lodging budget.

The poverty line is four times the minimal living expenses for an urban family of five.

Question 10

3 / 3 pts

(TCO 7) Investigate what historically happens to conservatives when firms are supposedly “too big to fail.”

Conservatives argue for expensive bail-out packages.

Most conservatives suggest letting the free market run its course.

Most argue against expensive stimulus packages.

They switch parties.