Analytical Framework
Greenberg, 1
1. According to THE STRUGGLE FOR DEMOCRACY, the framework advanced by the authors to aid our
understanding of American politics suggests that every political actor, institution, and process can be
located in one of four categories. Which of the following is NOT one of those sectors?
government
system
political linkage
structure
2. According to THE STRUGGLE FOR DEMOCRACY, the term governmental level refers to
A) public officials and official institutions that have formal, legal responsibility in making policy.
B) political actors that do not hold official public office.
C) parties, interest groups, and other institutions that transmit preferences to elected officials.
D) None of the above.
3. According to THE STRUGGLE FOR DEMOCRACY, the term "political linkage" refers to:
formal policy makers.
political actors, institutions and processes that transmit the wants and demands of the people and groups to
government officials.
environmental factors such as the U.S. economy.
the allocation of values among population subgroups.
4. According to THE STRUGGLE FOR DEMOCRACY, the term "structure" refers to:
linkage institutions.
formal policy makers.
fundamental and enduring factors that influence government, such as constitutional rules.
the bureaucracy.
5. According to THE STRUGGLE FOR DEMOCRACY, which level of the analytical framework largely
determines what issues reach the political agenda?
A) governmental
B) political linkage
C) structural
D) demographic
6. According to THE STRUGGLE FOR DEMOCRACY, which of the following is an example of a government
actor or influence?
a political party
the president
the position of the U.S. in world affairs
public opinion
7. According to THE STRUGGLE FOR DEMOCRACY, which of the four categories in the analytical framework
used in the text has the formal, legal responsibility for making policy?
government
political
structure
all of the above
8. According to THE STRUGGLE FOR DEMOCRACY, what policy area do the authors use in Chapter 1 to
illustrate their four category analytical framework?
foreign policy
social policy
civil rights legislation
regulatory policy
9. According to THE STRUGGLE FOR DEMOCRACY, which of the following was the most significant political
linkage influence affecting passage of the 1965 Voting Rights Act?
President Johnson
the Supreme Court
the civil rights movement
the U.S. Congress
10. According to THE STRUGGLE FOR DEMOCRACY, which of the following was a structure factor
contributing to the downfall of "Jim Crow" laws?
African-Americans migrating from the South to the North in search of better jobs
political parties beginning to decline in importance
Lyndon Johnson's superior legislative skills
a Congress controlled by the Democrats
11. According to THE STRUGGLE FOR DEMOCRACY, the text states that political decisions and policies:
are usually the result of either political linkage or government influences.
have multiple causes.
are usually the result of structure influences.
are usually the result of government influences.
12. According to THE STRUGGLE FOR DEMOCRACY, the case study "'B-1 Bob' Learns about His District"
changes in structural factors led to changes in
political linkage factors.
government factors.
government action.
all of the above.
13. According to THE STRUGGLE FOR DEMOCRACY, in Chapter 4, the authors primarily discuss the
importance of _______________ factors that shape American politics and what government does.
structure
demographic
political linkage
government
14. According to THE STRUGGLE FOR DEMOCRACY, much of the growth in the size, reach, and
responsibilities of the federal government is related to:
government factors.
political linkage factors.
structure factors.
demographic factors
Texas Government Text
Chapter 1
15. According to PRACTICING TEXAS POLITICS, public policy
A) may only be formulated by governmental bodies.
B) rarely involves conflict.
C) is of no importance to most citizens.
D) often involves interaction between governmental and non-governmental groups.
16. According to PRACTICING TEXAS POLITICS, "a community's habits, attitudes, and patterns of
behavior regarding government" is defined as its
A) political culture.
B) political socialization.
C) political economics.
D) political geography.
17. According to PRACTICING TEXAS POLITICS, Professor Daniel Elazar claims that the political
culture of Texas is
A) individualistic.
B) moralistic.
C) individualistic and traditionalistic.
D) traditionalistic and formalistic.
Democracy in the US and Around the World
Class
18. To say that authority is legitimate is to
a. suggest an obligation to comply with decisions.
b. Imply that the ruler has not always been perceived as the legal power.
c. Suggest that decisions are of little practical value.
d. Imply that the person in power does not have the good of the public in mind when making
important decisions.
19. The process that determines “who gets what, when, and how” is known as
a. decision-making. b. political science. c. politics. d. paternalism.
20. Harold Laswell’s definition in question #5 implies that
a. people are in conflict over valued things in society.
b. societies have a set of procedures to resolve the question of “who gets what, when, and how.”
c. individuals are anti-social.
d. both a and b.
Greenberg, 1
21. According to THE STRUGGLE FOR DEMOCRACY, laws that required separation and segregation of the
races are commonly known as
A) egalitarian laws.
B) reapportionment laws.
C) "Jim Crow" laws.
D) Martin Luther King laws.
22. According to THE STRUGGLE FOR DEMOCRACY, most African-Americans did not have an effective right
to vote until:
the 1850s and "Jacksonian democracy."
passage of the Civil War Amendments.
1920 and passage of the Nineteenth Amendment.
after 1965.
23. According to THE STRUGGLE FOR DEMOCRACY, democracy in the United States:
is complete.
is being threatened by communist forces in Central America.
is impossible to achieve because of racial diversity.
is incomplete and not operating as it might.
24. According to THE STRUGGLE FOR DEMOCRACY, A central theme of the book is that:
democracy is destined to fail in postindustrial America.
capitalism is required if democracy is to flourish.
it is a struggle to protect, enrich, and expand democracy.
democracy is a relatively simple concept and is for the most part self-executing.
25. According to THE STRUGGLE FOR DEMOCRACY, which of the following concepts is used as a standard for
evaluating the quality of American political life?
democracy
liberty
constitutionalism
freedom
Systems Model
Class
26. Which of the following systems model concepts describes social, economic, physical or other sets of
variables that are external to a political system but affect its operation?
a. environments b. input structures c. outputs d. feedback
27. Which of the following systems model concepts describes authoritative decisions and actions (generally
thought of as benefits or deprivations)?
a. environments b. input structures c. outputs d. feedback
28. According to systems model terminology, which of the following would be an example of a conversion
structure?
a. the Republican Party b. the National Rifle Association c. the news media
d. the United States Congress
29. According to systems model terminology, the “channels, linkages, and connections from the
environments to government institutions” are known as
a. input structures. b. feedback. c. outputs. d. conversion structures.
Production Line Model
Class
30. Which of the following sets of stages in the policy-making process is listed in the correct logical order?
a. evaluation, adoption, implementation, formulation, designation
b. formulation, adoption, designation, implementation, evaluation
c. agenda-setting, formulation, adoption, implementation, evaluation
d. agenda-setting, adoption, designation, implementation, evaluation
31. The stage of the policy-making process that involves “choosing an official course of action from among
alternative policy strategies” is
a. implementation. b. designation. c. formulation d. adoption.
32. In which stage of the policy-making process are problem identification (perception) and priority-setting
important activities?
a. agenda-setting b. designation c. adoption d. formulation
33. The U.S. Supreme Court strikes down a law school’s affirmative action admissions program as
unconstitutional. This is an example of which stage of the policy-making process?
a. implementation. b. designation. c. agenda-setting. d. evaluation.
34. A city health director designs an educational program to inform teenagers about the dangers of
“unprotected sex.” The city council must vote next week whether to fund the program. This is an
example of which stage of the policy-making process?
a. implementation. b. formulation. c. adoption. d. evaluation.
35. Inmates in the Texas Department of Corrections file a class action lawsuit in state district court in an
attempt to force the state to deal with the issue of prison over-crowding. This is an example of which
stage of the policy-making process?
a. agenda-setting b. implementation c. adoption d. formulation
36. The board of a Texas school district votes on a proposal to include a course on moral values in the high
school curriculum. This is an example of which stage of the policy-making process?
a. implementation. b. designation. c. adoption. d. formulation.
37. Which stage of the policy-making process exclusively involves governmental actors?
a. agenda-setting
b. designation
c. adoption
d. formulation
38. A medical doctor writes an editorial article calling for swifter approval of AIDS drugs by the Food and
Drug Administration. This is an example of which stage of the policy-making process?
a. implementation. b. designation. c. adoption. d. evaluation.
39. The results of a vote by a city council require that benefits under the city’s health plan be extended to
the “live-in” (unmarried) partners of city employees, irrespective of sexual orientation. This is an
example of which stage of the policy-making process?
a. agenda-setting b. adoption c. implementation d. designation
40. Which of the following BEST illustrates implementation?
a. The president gives a speech calling for welfare reform.
b. The Supreme Court upholds a city fire department’s affirmative action program.
c. The Pentagon proposes new procedures for making defense-related purchases.
d. The Occupational Safety And Health Administration (OSHA) inspects a plastics factory looking for
levels of vinyl chloride in excess of federal standards.
41. A president gives a speech in which he claims that violent juvenile crime is out of control and the
government needs to respond with decisive action. This is an example of which stage of the policymaking process?
a. implementation. b. agenda-setting. c. adoption. d. evaluation.
The Many Meanings of Democracy
Class
42. Which of the following accurately describe American democracy?
1. procedural 2. representative 3. liberal 4. socialist 5. substantive
a. 1, 2, and 3 b. 1 and 2 c. 2, 3, 4, and 5 d. 3 only
43. James Madison indicated in the FEDERALIST PAPERS that pure (direct) democracy
a. could deteriorate into mob rule.
b. is a style of government for noble men and elites.
c. prevents the majority from depriving the rights of the minority.
d. none of these.
44. The requirement that “citizens must participate in the political process” is characteristic of which theory
of democracy?
a. elite theory b. traditional democratic theory c. pluralist theory
d. none of these
45. Which of the following variations of democracy places an emphasis on the existence of individual (and
minority) rights, frequently at the expense of majority rule?
a. liberal democracy b. traditional democracy c. procedural democracy
d. egalitarian democracy
46. The process by which citizens propose policies which are approved or rejected by voters in a
subsequent election is called
A) ratification.
B) amendment.
C) initiative.
D) referendum.
47. The process of referring legislative or constitutional measures to the voters for their approval or
disapproval is called
a. an initiative election.
b. A referendum election.
c. A recall election.
d. A plebiscite.
Greenberg, 1
48. According to THE STRUGGLE FOR DEMOCRACY, The modern New England town meeting is very
A) different from American republicanism because it allows everyone to vote, even children.
B) similar to American republicanism because it demands that all citizens obey the law in return for civil
rights.
C) similar to American republicanism because it encourages all citizens to vote for representatives.
D) different from American republicanism because it practices direct participatory democracy.
49. According to THE STRUGGLE FOR DEMOCRACY, Which three principles or institutions are used to
evaluate democracies in Struggle for Democracy?
A) popular sovereignty, economic equality, and political liberty
B) elections, assemblies, and rights
C) basic rights, fair elections, and accountable leaders
D) popular sovereignty, political equality, and political liberty
50. According to THE STRUGGLE FOR DEMOCRACY, With respect to the distribution of wealth in a nation,
according to Aristotle and Jefferson, the ideal society for the practice of democracy is one
A) where wealth is distributed fairly evenly among everyone.
B) where a small elite controls most wealth.
C) with a large middle class.
D) in which men and women share equally.
51. According to THE STRUGGLE FOR DEMOCRACY, most simply democracy means:
rule by the people.
rule by the few.
rule by one.
rule by those with wealth.
52. According to THE STRUGGLE FOR DEMOCRACY, The heart of democracy lies in:
a faith in the collective will of all individuals.
a faith in the capacity of ordinary human beings.
a faith that God will anoint and ordain leaders of the people.
a faith in "chaos theory."
53. According to THE STRUGGLE FOR DEMOCRACY, What is the major difference between a direct democracy
and a representative democracy?
In a direct democracy citizens themselves make decisions, whereas in a representative democracy citizens
have intermediaries who make decisions for them.
A direct democracy is possible only if citizens participate, whereas in a representative democracy, citizen
participation is unnecessary.
The only major difference between the two is that direct democracies have been around longer than
representative democracies.
There is no difference between the two types of democracy.
54. According to THE STRUGGLE FOR DEMOCRACY, By "representative" democracy we mean:
policies are made such that all groups in the United States are fairly satisfied with the system.
a system in which the people select others to act in their place.
that legislators are representative of various groups in society, such as minorities, women, etc.
that legislators must vote exactly as their constituents desire.
55. According to THE STRUGGLE FOR DEMOCRACY, Democracy exists only when three things exist. Which
of the following is NOT one of the requirements for democracy?
popular sovereignty
religion
political equality
political liberty
56. According to THE STRUGGLE FOR DEMOCRACY, What is the definition of popular sovereignty?
political equality
political freedom
the ultimate source of government authority is the people
government is restrained within the limits of the Constitution
57. According to THE STRUGGLE FOR DEMOCRACY, The term "deliberative will" refers to which of the
following?
the will of representatives of the people
the will of the people arrived at after a period of reflection and discussion with others
the will of those in government who carry out the law
the process used by U.S. Supreme Court justices in their decision making
58. According to THE STRUGGLE FOR DEMOCRACY, Why is participation in the political process an
important condition of popular sovereignty?
Without widespread participation, the nature of the popular will can only be guessed at.
Without widespread participation, nothing guarantees that officials will respond to the popular will.
Participation is essential because the deliberative will of the people can only emerge from a process of
reflection and discussion with others.
All of the above are important reasons for participation.
59. In an election, the person who has the most money in the community gets to cast 100 votes; the person
considered the most religious in the city gets to cast 50 votes; the person who is considered the most
intelligent in the community gets to cast 10 votes; everyone else in the city gets to cast one vote except
people who have blue eyes, who do not get to vote at all. According to THE STRUGGLE FOR DEMOCRACY,
This voting scenario violates the principle of:
due process of law.
affirmative action.
cumulative voting.
political equality.
60. According to THE STRUGGLE FOR DEMOCRACY, Wealth and income in the United States are distributed:
fairly evenly among all groups.
in a highly unequal fashion.
fairly evenly among whites, but not between whites and minorities.
with little or no gender bias.
61. According to THE STRUGGLE FOR DEMOCRACY, Political equality involves what is referred to in the
____________ to the Constitution as "equal protection," meaning that everyone in a democracy is treated
the same by government.
13th Amendment
14th Amendment
15th Amendment
19th Amendment
62. According to THE STRUGGLE FOR DEMOCRACY, Political liberty refers to:
equality of opportunity.
basic freedoms essential to the formation and expression of the popular will.
having a written constitution to protect citizens from government.
nondiscrimination in employment.
63. According to THE STRUGGLE FOR DEMOCRACY, Why were the Founders of the nation afraid of "majority
tyranny?"
They were afraid that the majority might try to undermine the freedoms of minorities and/or threaten
individual rights.
They mainly feared that their positions of power in society would be undermined.
The founders themselves were not that concerned over minority rights. They knew that minorities would
be voting in elections and wanted their votes.
As members and representatives of the majority in America, they knew that the majority would not
tyrannize and were relatively unconcerned with the dangers of majority rule.
64. According to THE STRUGGLE FOR DEMOCRACY, The landmark civil rights bill that allowed widespread
African-American political participation in the South was the:
Civil Rights Act of 1875.
Emancipation Proclamation.
Fair Labor Standards Act of 1938.
Voting Rights Act of 1965.
Pluralist and Elite Theories
Class
65. Pluralist and elite theories agree on which of the following propositions?
a. The only real basis for political power is economic power.
b. All social groups in the United States have some impact on policy-making.
c. The traditional democratic ideal that all citizens are politically equal is NOT a very realistic
reflection of the American system.
d. Virtually anyone can step into politics and have at least some political influence.
66. The pluralist theory of democracy
1. is basically the same as traditional democratic theory in its assumptions about the role of citizens in
the political process.
2. sees democracy as operating through competition among groups.
3. suggests that there are several types of political resources which may be effective in influencing
public policy.
4. argues that the only meaningful political resource is money.
5. views public policy as a balance or equilibrium among competing group interests.
a. 1 and 2 b. 2 and 5 c. 2, 3, and 5 d. 1 only
67. Which of the following theories argues that political power is held by a relatively small group of people
whose main source of political power is economic power [wealth]?
a. elitism b. pluralism c. majoritarianism d. substantive democracy
68. With regard to policy change, elite theory holds that
a. changes in policy never occur.
b. changes in policy will occur only when the masses force the power elite to alter the status quo.
c. changes in policy occur only as a result of the elite redefining their own values and interests.
d. changes in policy narrow the gap between the elite and the masses.
69. Which of the following tends to emphasize policy outcomes?
a. traditional democratic theory b. pluralist theory
c. procedural democracy
d. elite theory
70. Which of the following tends to emphasize policy process?
a. substantive democracy b. pluralist theory c. majoritarian democracy
d. elite theory
The Role of Government in the American Economy
Class
71. A condition that exists when a private market fails to capture all of the social costs associated with the
production and consumption of a good or service is known as
a. a negative externality. b. a positive externality. c. adverse selection.
d. the free rider problem.
72. What policy responses might government attempt to counter the condition described in question #25?
a. subsidize the good or service b. provide the good or service
c. regulate the market d. all of the above
73. Which good or service is most likely to have associated with it the kind of condition described in #25?
a. higher education b. childhood immunizations c. automobiles
d. public libraries
74. Which of the following is an example of a pure public good/service?
a. airplane travel b. an interstate highway c. higher education
d. all of the above
75. A city council bans smoking in all public places in the city. Fines are levied against violators. Why has
the city council enacted this policy?
a. This is an example of adverse selection -- non-smokers are adversely affected by second-hand
smoke.
b. This is an example of government providing a public good -- it is doing what is good for the public.
c. This is an example of a negative externality -- the market fails to capture all of the social costs
associated with the production and consumption of cigarettes.
d. none of the above.
76. Which of the following terms BEST describes the American economy?
A) socialist
B) pure capitalism
C) laissez-faire market system
D) market capitalism
77. In class, we noted that the United States, Japan, and most of the countries of western Europe have
economies that we call __________ while Russia and most of the countries of eastern Europe have
economies that we call __________.
A) market socialism; command socialism
B) market capitalism; command capitalism
C) market capitalism; market socialism
D) command capitalism; market socialism
78. Most of the countries of the Middle East, Africa, and Latin America have __________ economies while
Cuba, North Korea, and the former Soviet Union have [had] ________ economies.
A) market socialism; command socialism
B) market capitalism; command capitalism
C) market capitalism; market socialism
D) command capitalism; command socialism
79. Which of the following would serve as an example of a government economic function which attempts
to strengthen or facilitate the operation of the market system [push the economy towards the model of pure
capitalism]?
A) government providing a public good such as a highway
B) government regulating a polluting industry to correct a negative externality
C) government enforcing anti-trust legislation to prevent the formation of monopolies
D) none of these
80. Suppose Congress rewrote the tax code to make the federal income tax more progressive. Such an
action would be an example of
A) government providing a suitable legal framework for the market system.
B) a government effort to modify or supplement the operation of the market system (effort to correct a flaw
of capitalism).
C) government regulation to correct a negative externality.
D) government regulation to correct a positive externality.
Greenberg, 4
81. According to THE STRUGGLE FOR DEMOCRACY, Which of the following statements best describes the
distribution of income and wealth among Americans during the 1980s and 1990s?
The poor got richer.
The rich got poorer.
The rich got richer.
The poor left and went to Canada.
82. According to THE STRUGGLE FOR DEMOCRACY, The distribution of poverty in the United States is not
random, but is concentrated among:
racial minorities.
female-headed households.
children.
all of the above
83. According to THE STRUGGLE FOR DEMOCRACY, Extensive material inequality may undermine the
possibility of:
political equality.
political elitism.
economic inequality.
both b and c
84. According to THE STRUGGLE FOR DEMOCRACY, Which of the following is an issue that the authors raise
about democracy being able to survive in a highly unequal society?
Those with wealth can make their voices heard better by government than those without wealth.
The government might not be able to fund all the programs that it would like to fund because the wealthy
have all the money.
Inequality might lead to chaos.
Those in the lower class would be forced into a subservient position by those in the upper class.
85. According to THE STRUGGLE FOR DEMOCRACY, What two characteristics best define a capitalist
economy?
equality and opportunity
private ownership and the existence of markets
a safety net and private ownership
equal pay for equal work and freedom to work where one wants to work
86. According to THE STRUGGLE FOR DEMOCRACY, The corporate-dominated economy that we are so
familiar with today emerged:
at the end of World War II.
after the Civil War.
in the late nineteenth and early twentieth centuries.
in the 1960s.
87. According to THE STRUGGLE FOR DEMOCRACY, Americans' belief that an individual's fate is (and ought
to be) tied to his or her own efforts, and that people are naturally competitive, always striving to better
themselves in relation to others is:
socialism
capitalism
competitive individualism
elite individualism
88. According to THE STRUGGLE FOR DEMOCRACY, The term _______________ refers to the hostility of the
common person to power and the powerful.
populism
progressive
egalitarian
liberty
Greenberg, 17
Economic Growth and Transformation
89. According to THE STRUGGLE FOR DEMOCRACY, The authors define economic growth as
A) two quarters of rising productivity.
B) a decline in the balance of trade.
C) six months of less than two percent inflation.
D) an annual increase in the gross domestic product.
90. According to THE STRUGGLE FOR DEMOCRACY, Government actions
A) influence interest rates, inflation, the level of unemployment, and the rate of growth in the economy.
B) have little influence over most macroeconomic indicators.
C) occasionally influence the stock market and interest rates, but usually its actions are ignored by
investors.
D) have little influence over "pocketbook" issues affecting most Americans.
91. According to THE STRUGGLE FOR DEMOCRACY, What best describes the recent transformation of the
American economy in the 1970s and 1980s?
A) absolute decline
B) relative decline
C) decreasing inequality
D) increasing nationalism
92. According to THE STRUGGLE FOR DEMOCRACY, The __________ of the 1930s made it clear to most
people that the market economy, if left alone, would suffer periodic collapse.
A) Second World War
B) New Deal
C) famine
D) worldwide Great Depression
Role of Government
93. According to THE STRUGGLE FOR DEMOCRACY, __________ play a substantial role in managing and
directing their economies.
A) Very few governments in foreign countries
B) Only socialist governments
C) Governments in all modern capitalist societies
D) Most governments in foreign countries, unlike that of the United States,
94. According to THE STRUGGLE FOR DEMOCRACY, Today, governments in all modern capitalist societies
play a substantial role in managing their national economies. The event that forever changed the role of
government in economic affairs was:
World War II.
World War I.
the worldwide Great Depression of the 1930s.
the election of FDR.
95. According to THE STRUGGLE FOR DEMOCRACY, Which of the following best describes why governments
in all modern capitalist societies play a substantial role in the management and direction of their
economies?
The free market economy, left to itself, is subject to periodic collapse, bouts of inflation, and
unemployment.
Elites in control of the government create policies which benefit business.
The economy could not work without some type of governmental intervention.
Most of the constitutions in countries around the world require that the government make economic
policies.
96. According to THE STRUGGLE FOR DEMOCRACY, The federal government is the:
largest customer in the United States.
biggest borrower in the United States.
biggest employer in the United States.
All of the above.
97. According to THE STRUGGLE FOR DEMOCRACY, Keynesian economic policy is consistent with a(n):
activist government role in the economy.
laissez-faire economic theory.
minimal role of government in the economy.
Keynesian economic policy is consistent with an activist government role in the economy, using
government spending and taxing policies to affect macroeconomic outcomes.
98. According to THE STRUGGLE FOR DEMOCRACY, Which of the following BEST explains why the relative
spending level of the federal government has increased steadily since the 1930s?
mainly the increased costs of running the government (e.g., salaries, pensions, etc.)
mainly increases in Congressional salaries
the transformation of the role of the federal government in American society
the cost of foreign wars
99. According to THE STRUGGLE FOR DEMOCRACY, The objective of macroeconomic policy is to
A) achieve full employment, steady economic growth, and stable prices.
B) study the activities of a single sector of the economy.
C) integrate the functions of the executive and legislative branches of government in setting economic
policy.
D) analyze the relationship between the poverty rate and the decline of family values.
100. According to THE STRUGGLE FOR DEMOCRACY, Macroeconomic policy refers
A) solely to the regulations of financial and investment businesses.
B) to all government policy that influences the economic well-being of citizens.
C) to policies involving foreign exchange rates, international trade, and foreign aid.
D) to fiscal and monetary policies.
101. According to THE STRUGGLE FOR DEMOCRACY, Which of the following economic alternatives is NOT
seriously considered by either major political party in the United States?
A) Keynesianism
B) monetarism
C) supply side economics
D) state socialism
102. According to THE STRUGGLE FOR DEMOCRACY, Keynesianism is consistent with
A) communism.
B) theories of small government.
C) an activist government role in the economy.
D) the ideas of Milton Friedman.
Comparing the US to Other Countries’ Economies
103. According to THE STRUGGLE FOR DEMOCRACY, Compared with most European countries, the United
States
A) has a lower GNP.
B) has more income inequality.
C) has less poverty.
D) spends more on social programs.
Capitalism
104. According to THE STRUGGLE FOR DEMOCRACY, A capitalist economic system is characterized by
A) extensive rules and regulations to protect business from unwarranted interference by the public.
B) government ownership of the means of production and the existence of markets to coordinate economic
activity.
C) private ownership of the means of production and the existence of markets to coordinate economic
activity.
D) extensive rules and regulations to protect the public from mercenary activities of business and
corporations.
Trade Issues
105. According to THE STRUGGLE FOR DEMOCRACY, The contentious nature of trade issues was recently
highlighted
A) in the G12 meeting in Brussels.
B) with the fight over the North American Free Trade Agreement.
C) with SALT II negotiations.
D) All of the above.
Budget
106. According to THE STRUGGLE FOR DEMOCRACY, Which of the following was a factor in the "Budget
Chaos in the 104th Congress?"
The budget bill fashioned in the House of Representatives included drastic cutbacks in the regulatory
responsibilities of the federal government and a slowdown in Medicare funding.
President Clinton did not support the budget bill.
A government shutdown for a week in November and three weeks in December and January.
All of the above
Goal of Government Economic Policy-Making
107. According to THE STRUGGLE FOR DEMOCRACY, Which of the following is a goal of government
economic policymaking?
economic growth
low employment
minimizing diseconomies
all of the above
108. According to THE STRUGGLE FOR DEMOCRACY, Which of the following is the primary objective of
macroeconomic policy?
increased foreign trade
a reduced deficit
increased spending
steady economic growth
109. According to THE STRUGGLE FOR DEMOCRACY, When government leaders adjust fiscal and monetary
policies they are focusing on:
microeconomic policy.
the national debt.
macroeconomic policy.
supply-side economics.
110. According to THE STRUGGLE FOR DEMOCRACY, When government officials change macroeconomic
policy they are:
trying to finance a foreign war.
lowering the national debt.
primarily concerned with lowering the interest rate.
trying to adjust the money supply, government spending, and taxes to affect the performance of the
economy as a whole.
Fiscal Policy
111. According to THE STRUGGLE FOR DEMOCRACY, Why are fiscal tools sometimes difficult to use in
regulating the economy?
Decisions about how much government should spend are made by a very small group of people.
Federal spending cannot be easily adjusted up or down as economic conditions change.
Decisions by Congress to lower the discount rate to federal banks are a cumbersome process.
Changes in spending and taxes can occur very quickly before many economists can agree on what the
problem is.
112. According to THE STRUGGLE FOR DEMOCRACY, Fiscal policy primarily concerns:
setting the interest rate.
government spending and taxing levels.
determining the "cost" of money.
paying foreign governments back the money we owe them.
113. According to THE STRUGGLE FOR DEMOCRACY, According to the Keynesian approach, when demand is
too high and triggers inflation (too many dollars chasing too few goods), government should do which of
the following?
increase spending
lower the discount rate
decrease taxes
decrease spending
114. According to THE STRUGGLE FOR DEMOCRACY, Government fiscal policies have to do with
A) interest rates and the money supply.
B) defense and foreign policy.
C) public restraints on business activities.
D) taxing and spending.
115. According to THE STRUGGLE FOR DEMOCRACY, Fiscal policy may lag behind the need to adjust to
changing economic conditions because
A) Congress must approve every change in interest rates.
B) changes in spending and taxing are often slow and cumbersome.
C) Congress has no control over how much the government spends.
D) foreign governments largely control American economic policy.
Monetary Policy
116. According to THE STRUGGLE FOR DEMOCRACY, The institution(s) responsible for monetary policy is
(are) the:
president and Congress.
Congressional Budget Office.
Federal Reserve Board.
Office of Management and Budget.
117. According to THE STRUGGLE FOR DEMOCRACY, Which of the following is a result of the Federal
Reserve Board making money available at lower interest rates to member banks and savings and loans?
Individual spending is likely to decrease.
Individual spending is likely to stay the same.
Individual spending is likely to increase but only for lower-income groups.
Individual spending is likely to increase overall.
118. According to THE STRUGGLE FOR DEMOCRACY, According to monetarists, which of the following is the
key to a healthy economy?
proper management of the supply of money and credit by central banks
proper management of governmental taxing
increased international trade competition
proper management of governmental spending
119. According to THE STRUGGLE FOR DEMOCRACY, The Fed is:
closely regulated by the president.
closely regulated by Congress.
relatively independent.
both a and b.
120. According to THE STRUGGLE FOR DEMOCRACY, Monetary policy is the responsibility of the
A) Federal Reserve Board.
B) president and Congress.
C) Monetary Control Board.
D) Secretary of the Treasury.
121. According to THE STRUGGLE FOR DEMOCRACY, Actions by the Federal Reserve Board are intended to
affect the
A) number of military recruits available to the armed forces.
B) amount of oil in the strategic oil reserve.
C) level of business regulation of a given industry.
D) amount of money available to businesses and individuals.
122. According to THE STRUGGLE FOR DEMOCRACY, Government monetary policy has to do with
A) taxing and spending.
B) interest rates and the money supply.
C) unemployment rates.
D) the size of the federal bureaucracy.
123. According to THE STRUGGLE FOR DEMOCRACY, One way that the Federal Reserve Board controls the
money supply is by
A) raising or lowering taxes.
B) vetoing federal regulations.
C) regulating the printing of money.
D) changing the discount rate.
Taxes
124. The term effective tax rate
a. is synonymous with the nominal tax rate.
b. is the same for everyone in a progressive tax.
c. is a meaningless concept.
d. refers to the percentage of an individual’s (or household’s) income paid in taxes.
125. Which of the following is an example of a progressive tax?
a. local property taxes. b. state and local sales taxes. c. the federal income tax.
d. none of these.
126. A regressive tax is one
a. in which the tax burden falls disproportionately on the lowest income groups.
b. that everyone objectively agrees is unfair.
c. in which the effective tax rate increases as income increases.
d. all of the above.
127. According to THE STRUGGLE FOR DEMOCRACY, the national government’s primary source of revenue is
A) flat taxes.
B) income and payroll taxes.
C) consumption taxes.
D) national sales taxes.
Regulation
128. According to THE STRUGGLE FOR DEMOCRACY, Which of the following BEST explains why
government regulates?
to redistribute incomes
to raise excise taxes
because people generally want government to do something to fix the problems caused by market failures
to expand the size of government
129. According to THE STRUGGLE FOR DEMOCRACY, By the end of the 1970s, what was the mood of opinion
leaders both inside and outside the government in regard to federal government regulation?
Most blamed excessive regulation for forcing inefficient practices on American companies and hastening
the decline of the United States in the world economy.
Most favored increased regulation in order to make the American workplace safer and the environment
cleaner.
Most favored a continuation of the already lax federal regulation imposed on American corporations.
Most favored an increase in regulations so that American corporations could work in tandem, thus making
the American economy more competitive in the world market.
Social Welfare
130. According to THE STRUGGLE FOR DEMOCRACY, Programs in which individuals contribute to an
insurance trust fund by way of a payroll tax on their earnings and receive benefits based on their
contributions are called:
IRA programs.
mutual fund programs.
means-tested programs.
social insurance programs.
131. According to THE STRUGGLE FOR DEMOCRACY, Programs that distribute benefits on the basis of need
to those who can prove that their income is low enough to qualify are called:
IRA programs.
mutual fund programs.
means-tested programs.
social insurance programs.
132. According to THE STRUGGLE FOR DEMOCRACY, Among industrialized democracies, the United States
is considered to be at the ____________ end of the spectrum in the delivery of social welfare.
minimal
liberal
developed
democratic socialist
133. According to THE STRUGGLE FOR DEMOCRACY, How is the American welfare system different from
welfare systems in other countries?
The United States' welfare state developed sooner than others in the world
The United States' welfare state is larger than most others in the world.
The elderly do considerably better than the young in the American welfare state.
The American welfare state is more re-distributive than other welfare states.
134. According to THE STRUGGLE FOR DEMOCRACY, What is one of the reasons why social welfare
programs developed so late in the United States?
Because of federalism, it was not clear where the main responsibility for social welfare stood.
The United States did not have severe problems that necessitated a welfare system.
The high income groups which controlled the government kept welfare programs at a minimum.
The Republican party dominated government on the state level for many years.
135. According to THE STRUGGLE FOR DEMOCRACY, Which of the following types of societies are
theoretically more willing to support welfare programs because recipients are considered neighbors and not
strangers?
pluralistic
socially equal
ethnically and racially homogeneous
ethnically and racially divided
Texas Government Text
Chapter 10
136. According to PRACTICING TEXAS POLITICS, the traditional state fiscal policy in Texas is the
achievement of a balanced budget through
a. low taxes and low levels of public spending.
b. high taxes and low levels of public spending.
c. high taxes and high levels of public spending.
d. low taxes and high rates of public spending.
137. According to PRACTICING TEXAS POLITICS, the state’s economic turnaround, which was evident by the
mid-1990s, is credited to
a. less reliance on oil and more reliance on agriculture.
b. more reliance on oil and less reliance on high-tech manufacturing.
c. more reliance on oil and less reliance on agriculture.
d. less reliance on oil and more reliance on high-tech manufacturing, exports, and service industries.
138. According to PRACTICING TEXAS POLITICS, which of the following were placing pressures on the state’s
budget at the end of the 20th century?
a. education, legislative operating expenses, and transportation
b. legislative operating expenses, public assistance, and public education
c. education, transportation, and food stamp costs
d. prisons, education, and transportation
139. According to PRACTICING TEXAS POLITICS, in Texas, spending for public assistance
a. is the largest single element in the state’s budget.
b. accounted for 40% of state expenditures in the 2000-2001 biennium.
c. ranks Texas near the bottom of the 50 states in public assistance available to indigent persons.
d. is capped by the state’s constitution at $80 million annually.
140. According to PRACTICING TEXAS POLITICS, the single most important tax in Texas is the
a. general sales tax.
b. selective sales taxes (excise taxes)
c. oil and gas severance tax.
d. gross business receipts tax