05 Jan (TCO 7) Many conservative

1. Question :

(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. Question :

(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. Question :

(TCO 7) During the 1970s, critics developed this new term to describe inflation with stagnant economic growth.

Growth Slope

Quagmire

Stagflation

Recession

Question 4. Question :

(TCO 7) Between 1965 and 1973, the percentage of Americans living below the poverty line _____.

doubled

greatly decreased

slightly increased

rapidly increased

Question 5. Question :

(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.

Type: MC

Question 6. Question :

(TCO 7) Which of the following is an increasing financial concern of the Medicare program?

The proportion of older people in American society is increasing steadily.

Every American citizen obtains Medicare on reaching age 65, regardless of class.

Economic inequality renders Medicare more necessary for some than for others.

Wealthy Americans are taking advantage of the Medicare system.

Question 7. Question :

(TCO 7) According to political scientist Ira Sharkansky, “All modern states are welfare states, and all welfare states are _____.”

democratic

compassionate

bureaucratic

incoherent

Question 8. Question :

(TCO 7) How might Americans’ reluctance toward entitlement programs benefit them in the long run?

Citizens will pay lower taxes, stimulating the economy via “trickle-down” economics.

Entitlement programs are complex and inefficient; our government will save time and money by proceeding with caution.

Americans can justify raising the debt ceiling through entitlement programs, so long as they are wary of the choices they make.

Government subsidies to businesses, rather than spending on welfare programs, will help the United States generate revenue and reduce overall spending.

Question 9. Question :

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

reasonable

disproportionate

too high

too low

Question 10. Question :

(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