(TCO 7) Radicals use the term “political economy” instead of _____ to describe their critique of capitalism and the inequitable distribution of wealth among nations.
(TCO 7) Early 20th-century European governments subscribed to _____ doctrines, generally keeping their hands away from the economy.
(TCO 7) President Jimmy Carter attempted to stimulate the economy, but this made inflation worse. This led him to _____.
lose the 1980 election
slash prices of corn and soybeans
subsidize major oil companies
increase the national deficit
(TCO 7) What event is largely considered responsible for deterring Johnson’s War on Poverty?
(TCO 7) Analyze recent changes to the Food Stamp program.
The distribution of cash grants allows the program to be easily misused.
The updated debit card system makes the program more difficult to misuse.
Many recipients sell Food Stamps for 50 cents on the dollar in order to purchase drugs and alcohol.
The program allocates surplus government dairy to the poor, ameliorating milk and cheese inflation.
(TCO 7) Medical costs consume nearly _____% of the U.S. gross domestic product, most of it paid through government and private health insurance.
(TCO 7) According to political scientist Ira Sharkansky, “All modern states are welfare states, and all welfare states are _____.”
(TCO 7) How might Americans’ reluctance toward entitlement programs benefit them in the long run?
Citizens will pay lower taxes, stimulating the economy via “trickle-down” economics.
Entitlement programs are complex and inefficient; our government will save time and money by proceeding with caution.
Americans can justify raising the debt ceiling through entitlement programs, so long as they are wary of the choices they make.
Government subsidies to businesses, rather than spending on welfare programs, will help the United States generate revenue and reduce overall spending.
(TCO 7) What was the poverty line in 2012?
(TCO 7) Theoretically, what are the consequences if the government assumes the burden of bad loans?
Citizens will default on their mortgages.
Banks will learn from their mistakes and pay back the burden with interest.
Ultimately, the government will profit.
Firms will be encouraged to continue their risky behavior.