Health care debates illustrate how special interest groups can use their lobbying power to control ...

Health care debates illustrate how special interest groups can use their lobbying power to control the federal government to transfer wealth from one group of productive, income earning individuals to another group that may or may not be
 
  productive. Indicate whether the statement is true or false

Question 2

Mass production was made possible by mass consumption, a national market and international trade.
 
  Indicate whether the statement is true or false

Question 3

When the government increased spending during the 1930s in an attempt to create jobs and end the Great Depression, it provided an example of expansionary
 
  (a) fiscal policy.
  (b) monetary policy.
  (c) regulatory policy.
  (d) welfare policy.

Question 4

If the Federal Reserve purchases 1 million in government securities in the open market, with a 25 percent required reserve ratio on deposits, the maximum increase in deposits would be
 
  a. 4 million.
  b. 10 million.
  c. 25 million.
  d. -4 million.
  e. none of the above

Question 5

As an economy grows and develops, the police powers of the government with respect to controlling, regulating and inspecting businesses and their output become increasingly more costly to uphold and protect.
 
  Indicate whether the statement is true or false

Question 6

Output produced and sold always generates profits for businesses.
 
  Indicate whether the statement is true or false

Question 7

If commercial banks hold checkable deposits of 100,000, reserves of 30,000, and the required reserve ratio is 20 percent, what is the maximum additional amount by which the banking system can expand the money supply?
 
  a. 20,000
  b. 30,000
  c. 50,000
  d. 60,000
  e. -50,000

Question 8

Local, state and federal government control and influence over businesses through taxes, subsidies, licensing and inspections are a firm part of U.S. history.
 
  Indicate whether the statement is true or false

Question 9

The greater the social immobility is within a country, the greater the chance that human talent and skills will not go to waste.
 
  Indicate whether the statement is true or false

Question 10

Which of the following best describes the policy of the New Deal to combat the Great Depression?
 
  (a) Taxation should be increased so as to eliminate the deficit in the federal budget.
  (b) Government spending should be reduced so as to give businesses confidence that the free enterprise system was not being replaced by big government.
  (c) The government should offset deficiencies in private spending with increased government spending in order to create jobsany jobs.
  (d) Private enterprise should be replaced by government planning because the market system had failed to provide prosperity and economic growth.

Question 11

The most commonly used tool by the Federal Reserve to control the monetary base is
 
  a. changes in the discount rate.
  b. changes in tax rates on commercial banks.
  c. changes in legal required reserve ratios.
  d. open market operations.