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Economic Policy
Test Description: GOVT 11
Instructions: Answer all questions to get your test result.
1) The size of the national debt is
A
rising
B
unchanged
C
declining
D
stagnating
2) In the 19th century, industrialization worsened the effects of natural
A
economic cycles
B
business cycles
C
economic regulation
D
deregulation
3) What is the source for the money in the Social Security Trust Fund?
A
income taxes
B
property taxes
C
payroll taxes
D
sales taxes
4) What is a government program called that provides benefits to all citizens who meet eligibility requirements?
A
an entitlement program
B
a minimum program
C
a basic program
D
a recessionary program
5) Which of the following is true about Social Security?
A
It is a retirement benefit program for citizens
B
It is a form of accident insurance
C
It is only available to the very wealthy
D
It is entirely supported by property taxes
6) Which of the following terms describes US economic policy during the 19th century?
A
managed regulation
B
fiscalism
C
Keynesian-ism
D
laissez-faire
7) The annual shortfall between federal revenues and expenditures is known as which of the following?
A
the budget deficit
B
the expenditure difference
C
the national debt
D
the trade deficit
8) Which of tyhe following is the greatest source of revenue for the federal government?
A
income taxes
B
taxes on cigarettes and alcohol
C
Medicaid taxes
D
Social Security taxes
9) An entitlement program provides benefits to
A
all citizens of the United States
B
legal immigrants with a work visa
C
citizens who have made payroll tax contributions
D
citizens who meet eligibility
10) In an economic slowdown, Keynesian (demand-side) economic policy would advocate
A
decreasing inflation
B
increasing the money supply
C
raising interest rates
D
increasing government spending
*select an answer for all questions
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