Question 1

If there were no Social Security, half of all senior citizens would be living below the poverty line (BPL).

Accepted Answer

Social Security is a crucial source of income for many seniors, and without it, a significant portion of them would fall below the poverty line, as it provides financial support that many rely on for basic living expenses.

Question 2

Unlike Social Security, Medicare is a means-tested program.

Accepted Answer

Medicare is not means-tested, meaning eligibility is not determined by income or assets. It is available to most individuals who are 65 or older and have paid into the system through payroll taxes.

Question 3

In the first two decades of the twenty-first century, about 40 percent of farms in the United States received subsidies.

Accepted Answer

According to data from the USDA, a significant portion of farms in the United States received subsidies, with estimates around 40% during the early 2000s to 2020.

Question 4

The national government administers the TANF program.

Accepted Answer

The Temporary Assistance for Needy Families (TANF) program is administered by state governments, although it is funded by the federal government.

Question 5

The power of government to set conditions on companies seeking to sell goods or services to government agencies is called contracting power.

Accepted Answer

This statement is true. The government has the power to set conditions, such as pricing and quality requirements, in its contracts with companies that want to sell goods or services to government agencies.

Question 6

Social Security is a contributory program.

Accepted Answer

Social Security is a contributory program, meaning that individuals pay into the program through payroll taxes during their working years and then receive benefits based on their contributions when they reach retirement age or become eligible due to disability.

Question 7

During the 1970s and early 1980s, inflation was one of America's most vexing problems.

Accepted Answer

This is a well-known fact in economic history. The inflation rate reached as high as 14% in 1980, causing significant economic disruption and concern among policymakers.

Question 8

The government's use of taxing and spending powers to manipulate the economy is called monetary policy.

Accepted Answer

The government's use of taxing and spending powers to manipulate the economy is actually called fiscal policy. Monetary policy refers to the actions of central banks to manage the money supply and interest rates in order to achieve economic goals.

Question 9

Protecting the environment generally complements the economic goals of policymakers.

Accepted Answer

The answer of Protecting the environment generally complements the economic...

Question 10

The federal government's first independent regulatory commission, the Interstate Commerce Commission (ICC), was designed to control the monopolistic practices of railroads.

Accepted Answer

The ICC was established in 1887 to regulate the railroad industry and prevent monopolistic practices, ensuring fair rates and eliminating rate discrimination.

Question 11

Under the current Medicare system, the national government exercises very tight control over the quality of the services and the level of fees that health care providers charge.

Accepted Answer

The answer of Under the current Medicare system, the national...

Question 12

Governmental programs are usually touted by their proponents as serving the public interest, except when Americans are deeply divided on an issue.

Accepted Answer

The answer of Governmental programs are usually touted by their...

Question 13

In 2018, President Trump pledged to support a consumer protection agency established by Congress after the 2008-2009 financial crisis, and to strengthen its ability to oversee consumer lending and credit card issuer practices.

Accepted Answer

President Trump and his administration generally sought to reduce the power and influence of the Consumer Financial Protection Bureau (CFPB), which was established after the financial crisis, rather than strengthen it.

Question 14

The Federal Reserve can affect the total amount of credit available in the United States.

Accepted Answer

The Federal Reserve has the ability to influence the amount of credit available in the United States by adjusting interest rates, the money supply, and other monetary policy tools. These decisions can impact lending and borrowing activity, affecting the overall availability of credit in the economy.

Question 15

A system of 12 banks in the United States that facilitates exchanges of cash, checks, and credit, as well as regulating member banks, is called the Bank of the United States.

Accepted Answer

The Bank of the United States was a central bank in the US during the 19th century. The current system of 12 banks in the US that facilitates exchanges of cash, checks, and credit and regulates member banks is called the Federal Reserve System.

Question 16

The American income tax is a regressive tax.

Accepted Answer

The American income tax system is progressive, meaning that tax rates increase as income increases.

Question 17

In the early 1970s, President Richard Nixon proposed a universal comprehensive health insurance plan that was considerably more generous and government-controlled than the Affordable Care Act (ACA).

Accepted Answer

The answer of In the early 1970s, President Richard Nixon...

Question 18

Subsidies were the dominant form of public policy of the national government and the state and local governments throughout the nineteenth century.

Accepted Answer

Subsidies were widely used by governments in the 19th century to promote economic development and support specific industries.

Question 19

To increase the supply of money available to consumers, the Federal Reserve sells government securities.

Accepted Answer

This statement is incorrect. To increase the supply of money available to consumers, the Federal Reserve would typically buy government securities, not sell them. When the Federal Reserve buys government securities, it injects money into the economy, increasing the money supply.

Question 20

Most states set TANF payments high enough to bring families well above the federal poverty line.

Accepted Answer

Most states set Temporary Assistance for Needy Families (TANF) payments below the federal poverty line, providing only partial financial support to families in need.

Quiz 13: Introduction to Public Policy