29 Questions
What is the characteristic of a public good?
It is not excludable and is essentially infinite.
What is the main difference between public goods and toll goods?
Public goods are free, while toll goods require payment.
Why is a home considered a private good?
Because it is reserved for personal use and requires payment.
What is an example of a common good?
Forests
What is the characteristic of a toll good that is similar to a public good?
It is open to all and theoretically infinite if maintained.
What type of policy tends to collect payments or resources from many but concentrates direct benefits on relatively few?
Distributive policy
Which type of policy is most effective for controlling or protecting public or common resources?
Regulatory policy
What is the primary goal of redistributive policy?
To transfer income and wealth from one group to another
Which of the following is NOT a key domestic arena of public policy?
Environmental conservation
Which social safety net program provides health insurance for low-income citizens?
Medicaid
What is the main role of policy analysts?
To assess potential policies and predict their outcomes
What type of policy is Social Security?
Social welfare policy
What is the primary focus of Keynesian economic policies?
Increasing consumer consumption through government spending
Which agency is responsible for promoting scientific research and development?
The National Science Foundation
What is the primary role of policy advocates?
To work towards changing public policy to fix a particular issue
How many sequential stages are involved in the public policy process?
Four
What is the focus of supply-side economics?
The productive capacity of a country as the primary driver of economic growth
What was the main approach of the U.S. government to economic policy until the 1930s?
A hands-off approach, assuming the economy would self-correct
What is the primary characteristic of mandatory spending?
It is allocated for specific entitlement programs
What is the purpose of tax policy in generating revenue?
To provide benefits to residents in exchange for taxes
What is the main difference between mandatory and discretionary spending?
The frequency of authorization by Congress
Which of the following is an example of discretionary spending?
Science and technology
What is the primary goal of Keynesian policy?
To stimulate economic growth through government spending
What is the primary effect of a progressive tax system on taxpayers?
It increases the effective tax rate as income increases
What is the primary role of the Federal Reserve Board in the economy?
Influencing monetary policy and regulating banks
What is the result of a regressive tax system on the wealthy?
They pay a lower percentage of their income in taxes
What is the main function of the Federal Open Market Committee?
Setting interest rates and macroeconomic policy
How can monetary policy change the economy?
Through the level of interest rates
What is the primary goal of the Federal Reserve Board's monetary policy?
To control the growth of the money supply
Identify and understand the characteristics of private goods, public goods, and toll goods. Learn how these types of goods are classified and their examples in real-life scenarios.
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
Get started for free
