Which of the following statements best describes the relationship today between government and the economy in the United States?

The government has an important role in regulating and maintaining the U.S. economy.

The term externalities refers to

The unpaid costs of production incurred by society.

When the Fed was created in 1913

It had no role in the management of the nation's economy.

A ruling by the Food and Drug Administration that a drug is dangerous to use and therefore cannot be marketed is an example of regulation for the purpose of

Equity.

The era of "new social regulation," which addressed issues such as the environment and worker safety, differed from the previous two eras of regulatory reform in that

The aim was to regulate activities of firms of many types, not just those in a particular industry.

Fiscal policy is a mechanism the government employs to influence the economy. Fiscal policy is based on

The government's taxing and spending decisions.

What did Congress do in 1995 to reduce overregulation?

It enacted legislation that prohibits administrators in some instances from issuing a regulation unless they can show that its benefits outweigh its costs.

The Progressive Era of government regulation focused on

Stopping the unfair business practices of the new monopolies, such as the railroads.

Monetary policy differs from fiscal policy in that

It can be implemented more quickly than fiscal policy.

__________ wrote The Silent Spring in 1962.

Rachel Carson.

A major point of debate surrounding the Federal Reserve's role in economic policy is

The Fed's political accountability.

Advocates of deregulation are primarily concerned with

Efficiency.

Regarding the Kyoto agreement and greenhouse gas emissions, which of the following is true?

-The United States is the largest single producer of greenhouse emissions in the world, on a per-capita basis. -President George W. Bush rejected the agreement. -The burden of addressing the global warming problem will fall unevenly on nations. **All these answers are correct.

Which president's use of government policy as economic stimulus ushered in the modern era of U.S. government fiscal policy?

Franklin Roosevelt.

The economic problem is low productivity and high unemployment, the fiscal policy action on the demand side would be to

Increase spending.

Which of the following statements is true?

Keynes advocated government spending to counteract an economic downturn.

Which is true regarding the nation's environmental policy?

A majority of the public is sympathetic to environmentalism.

Which of the following is correct about environmental policy?

The national parks are subject to a dual use of policy of preservation, recreation, and exploitation of the rich natural resources.

The Federal Reserve plays a large part in establishing __________ policy.

Monetary.

What was a major change brought about by the National Labor Relations Act of 1935?

Workers were given the right to bargain collectively.

Regulatory activity relating to the environment has actually meant that the environment today is

Vastly more clean than it was during the 1960s.

The creation of the Food and Drug Administration and the passage of the Securities and Exchange Act were intended to

Promote equity in the economy.

Farm subsidies have traditionally had strong support in Congress, particularly from

Rural-state senators and representatives.

About what percentage of the annual federal budget is accounted for by the interest paid on the national debt?

15%.

The federal government has assumed a permanent, strong role in the economy, contributing to its stability and efficiency since

The 1930s.

Government benefits for business include all of the following EXCEPT

Minimum-wage laws.

Judged in the context of the full range of public policies, the government in the United States has been

Substantially more supportive of business than labor.

In John Maynard Keynes's demand-side economic theory, an economic recession can be shortened through

Government spending programs.

Members of the Federal Reserve Board

Are appointed by the president and are not subject to removal.

The Federal Reserve controls the money supply through all of the following actions EXCEPT

Lowering the tax rate on individuals.

Over the past forty years, the burden of federal taxation has

Shifted from corporations to individuals.

What has been the preferred strategy of U.S. lawmakers for combating the problem of global warming?

Alternative energy resources and energy conservation.

Democrats in Washington have usually responded to high levels of unemployment with

Increased government spending.

The _______________ established minimum wages and constraints on the use of child labor.

Fair Labor Standards Act of 1938.

The highest rate of inflation (13 percent) since World War II occurred in __________.

1979.

Earth Day was the brainchild of Senator

Gaylord Nelson.

Keynesian economics emphasizes ____________________ as a means of curtailing economic downturns.

Increased government spending.

Which of the following government agencies regulates business competition?

All of these: the Federal Trade Commission; the Interstate Commerce Commission; and the Antitrust Division of the Justice Department.

The tax cuts pushed by President George W. Bush while in office were premised largely on

Supply-side economics.

The Tennessee Valley Authority is

An electric industry owned by the United States.