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