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When we speak of a policy that has widely distributed costs and benefits, we speak of
A) entrepreneurial politics.
B) client politics.
C) interest-group politics.
D) majoritarian politics.
E) cost/benefit politics.
2.
A proposed subsidy will benefit the dairy industry but increases the cost of milk nationwide. What type of politics ismost likely involved?
A) Entrepreneurial politics
B) Client politics
C) Interest-group politics
D) Majoritarian politics
E) Monetary politics
3.
Which of the following statements accurately distinguishes client politics from interest-group politics?
A) Ideology plays a larger role in client politics.
B) Client politics does not involve interest groups.
C) Only those who benefit from the policy organize in client politics.
D) Costs are more widely distributed in client politics.
E) Costs are typically low in client politics.
4.
The Federal Reserve Board is characterized by all the following except
A) it has seven members nominated by the president and confirmed by the Senate.
B) its members serve fourteen-year terms.
C) the chair of the board is designated by the Senate.
D) a goal of the board is to keep prices stable, avoiding inflation.
E) a goal of the board is to keep prices stable, avoiding deflation.
5.
The reason client groups usually win in client politics is that
A) nobody else stands to lose enough to make it worthwhile to fight the policy.
B) pork barrel politics is not involved.
C) too many people stand to win under the policy for it to encourage strong dissent.
D) even policy entrepreneurs usually support the policies.
E) members of Congress can rarely resist the economic incentives to regulate.
6.
A key requirement for a policy entrepreneur to be successful is
A) strong partisan support.
B) the ability to work behind the scenes and avoid attracting publicity.
C) support of a corporate sponsor, like General Motors.
D) a talent for leadership.
E) influence with congressional committee staff.
7.
Members of Congress dislike interest-group politics because
A) it forces them to take sides between evenly matched groups.
B) political parties play a big role, which interferes with their independence.
C) political action committees are seldom involved, and thus they have little to gain in terms of campaign contributions.
D) a policy's outcome is usually decided before it reaches them.
E) party leaders would rather appear positive.
8.
In political jargon, Social Security is often referred to as
A) "the chair."
B) "the last hill."
C) "the third rail."
D) "the wall."
E) "the toaster."
9.
In countries where the government manages health care and pays all the costs,
A) health care costs do not increase at the same rate as they do in the United States.
B) patients experience little or no delay in treatment and services.
C) the development of new technologies is strongly encouraged.
D) physicians have to deal with much less red tape.
E) infant mortality is higher.
10.
The late Senator Russell Long highlighted the problem with taxes by suggesting that Congress taxes
A) "when the lights are on, but no one is paying attention."
B) "at will, but in secret."
C) "anything, but not everything."
D) "the scary snow man."
E) "the fellow behind that tree."
11.
The chair of the Federal Reserve serves for _____ years.
A) 2
B) 4
C) 8
D) 14
E) 15
12.
After World War II, it was clear that the countries divided into market-based and state-run areas
A) enjoyed equal success in both areas.
B) enjoyed moderate success in state-run areas.
C) enjoyed moderate success in market-based areas.
D) experienced vastly greater performance in state-run areas.
E) experienced vastly greater performance in market-run areas.
13.
Currently, the Social Security tax is approximately _____ percent.
A) 3
B) 7
C) 12
D) 20
E) 26
14.
No single explanation of policy making is correct because
A) majorities in Congress can be produced by any one of the four types of politics.
B) the Supreme Court always has the last word.
C) no one knows what goes on behind the closed doors of Congress.
D) the public's reaction to an issue cannot be predicted.
E) policy publics are usually slower than elites in formulating ideas.
15.
There is evidence to suggest that when inflation is up, voters tend to
A) vote for Independent candidates.
B) vote for Democratic candidates.
C) vote for Republican candidates.
D) vote for the party in power.
E) vote for incumbents.
16.
The Federal Reserve System is composed of
A) the Federal Reserve Board and the twelve federal reserve banks around the nation.
B) the Federal Reserve Board, the Secretary of the Treasury, and the head of the council of economic advisers.
C) the Federal Reserve bank leaders and the president's top economic adviser.
D) the president, the Federal Reserve Board chair, the Secretary of the Treasury, and other top officials invited to serve by the president.
E) the president, members of the Senate commerce committee, and the chair of the Federal Reserve Board.
17.
One key concern for entrepreneurial politics is the possibility that
A) agencies do not have a single administrative head.
B) the media will give much attention to individual efforts.
C) the perceived benefits far outweigh the costs.
D) interest groups can confuse policy in such a way that the public no longer cares.
E) policy can be captured by the very client firms it sets out to regulate.
18.
In 2001, a bipartisan commission that studied Social Security recommended
A) voluntary personal retirement accounts.
B) raising the retirement age.
C) raiding the Social Security tax.
D) reducing benefits.
E) eliminating it entirely.
19.
High-earners who retire now receive about __________ per month via Social Security.
A) $800
B) $1,100
C) $1,800
D) $2,100
E) $4,300
20.
If the Fed cuts rates too much,
A) people will take out foolish loans and prices may go up.
B) investments will slow down.
C) people will be reluctant to take out loans.
D) new jobs will not be created.
E) prices will go down.
21.
When Medicare was passed in 1965, its sponsors said it would cost about ____ a year.
A) $12 million
B) $50 million
C) $100 million
D) $ 1 billion
E) $12 billion
22.
Citizens' tax bills in the United States are __________ those of many other Western democracies.
A) higher than
B) about the same as
C) lower
D) incomparable with (because so little of our economy is government-owned)
E) incomparable with (because so little of our economy is based on industry)
23.
The new health care plan of 2010 was passed by the House and Senate
A) with support from Republicans and Democrats alike.
B) without a single Republican vote.
C) with unanimous support from Democrats.
D) with a few key Republican votes.
E) with huge popular support.
24.
As of 2009, the national debt was over _____ trillion dollars.
A) 6
B) 7
C) 8
D) 9
E) 10
25.
Which of the following nations has the lowest tax burden?
A) France
B) Sweden
C) Germany
D) Canada
E) United States

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