Ch. 16 Note Evaluation
Multiple Choice
Identify the choice that best completes the statement or answers the question.
____
1. John Maynard Keynes believed that
a. government should adopt a laissez-faire policy.
b. government should increase employment by adopting an
expansionary monetary policy.
c. government should leave management of the economy to the
private sector, except in time of war.
d. government could increase employment by raising spending.
____
2. Programs aimed only at people who are poor or disabled are known as
a. social insurance programs.
c. federally funded programs.
b. government programs.
d. public assistance programs.
____
3. A federal program that provides monthly payments to people who are
retired or unable to work is called
a. Medicare.
c. Social Security.
b. Senior Citizen's program.
d. worker's compensation.
____
4. Since the end of World War II, the size of the U.S. government
a. has remained about the same.
b. has grown proportionally to the increase in the population.
c. has grown much faster than the population.
d. has not kept up with the increase in the population.
____
5. An excise tax is a tax paid on
a. earned income.
b. dividends and interest.
c. manufacture, use, and consumption of certain goods.
d. assets of someone who has died.
____
6. Some people oppose government assistance because they believe it
a. discourages personal responsibility.
b. should be handled by large companies.
c. increases tax revenues.
d. shields citizens from the harmful effects of unemployment.
____
7. Which is the public good provided by only the federal government?
a. parks
c. Medicare
b. museums
d. national defense
____
8. Negative or positive side effects of the production process are also
called
a. fluctuations.
c. externalities.
b. extensions.
d. compensations.
____
9. John Maynard Keynes believed that
a. government should not interfere in the economy by adjusting
the money supply.
b. government should adopt a laissez-faire policy, except in
time of war.
c. government spending and taxing can be used to help the
economy.
d. the private sector should handle most functions in the
economy.
____ 10.
Suppose the government passed a law, taxing manufacturers
according to the amount of pollutants they release into the
environment. This law would be an example of which regulatory function
of government shown in the illustration?
a.
b.
c.
d.
____ 11.
protect consumers
supervise labor/management relations
promote competition
regulate negative externalities
Suppose the government passed a new antitrust law. This law would
be an example of which regulatory function of government shown in the
illustration?
a. protect consumers
b. supervise labor/management relations
c. promote competition
d. regulate negative externalities
Ch. 16 Note Evaluation
Answer Section
MULTIPLE CHOICE
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
D
D
C
C
C
A
D
C
C
D
C