GOVT 350 Final Exam Questions and
All Correct Answers 2025-2026
Updated.
What was the significance of FDR's Brain Trust? - Answer This group devised measures to
implement that became New Deal policies. Members were primarily academics from
universities.
What is meant by the term 'New Deal' under FDR? - Answer Policies enacted under FDR that
created active intervention from a strong central government.
What does the phrase 'cradle to grave' mean? - Answer Individuals are dependent on
government support for their entire lives.
Friedman discusses 4 spending categories. What are they? - Answer 1.) Spending on yourself
2.) Spending your money on someone else
3.) Spending someone else's money on you
4.) Spending someone else's money on someone else
Which of Friedman's 4 spending categories results in the most efficient and wise allocation of
scarce resources? - Answer Spending your money on yourself. You best know your needs and
resources, and you can allocate them best.
What is the fundamental fallacy of the welfare state? - Answer Bureaucrats spending
someone else's money on other people leads to waste and corruption.
The modern welfare state can be traced back to which influences? - Answer Bismarckian
Germany
Industrial Britain
Sweden
What two contradictory phenomena occurred as a result of New Deal programs? - Answer
Widespread dissatisfaction with the explosion of welfare activities contrasted with continued
pressure for further expansion (p. 96)
What is the most important component of Social Security? - Answer Old age and survivors'
benefits. These account for 2/3 of total expenditures and 3/4 of the recipients.
, What measures does Friedman propose to 'wind down' Social Security? - Answer 1.) Repeal
the payroll tax
2.) Continue to pay existing beneficiaries
3.) Give workers who already earned coverage what they are entitled to
4.) Give workers who have not yet earned coverage a capital sum
5.) Terminate any further accumulation of benefits
6.) Finance payments under items 2, 3, and 4 out of general tax funds
What is Process Philosophy in its most basic essence? - Answer Process Philosophy sees
reality as an evolving entity based on change rather than on absolutes.
How does Process Philosophy relate to the expansive jurisdiction of the national government? -
Answer Process Philosophy leaked into government policy and began to see legislation as a
way to enact change and propel reality forward.
What is the Madisonian interpretation of Article 1 Section 8 Clause 1? - Answer Madisonian
interpretation is that the grand objects should be achieved through the enumerated powers.
What causes inflation? - Answer Monetary policy causes inflation.
How does inflation impact prices and the value of money? - Answer Inflation raises prices
while simultaneously lowering the values of money.
Why do inflationary policies distort price signals? - Answer Producers think demand has
gone up so they produce more at the same price but then realize that the price of the things
they buy has gone up as well
Explain: "Inflation is a monetary phenomenon arising from a rapid increase in the quantity of
money than in output" - Answer Inflation occurs when money is injected into the economy
at a rate higher than the economy's output (reflected in GDP)
Explain: "In today's world, government determines the quantity of money" - Answer As a
producer of money, government is often responsible for inserting money into and out of the
economy.
Explain: "There is only one cure for inflation: a slower rate of increase in the quantity of money"
- Answer This would allow the price system to stabilize and not be disrupted by the increase
while allowing for an elastic economy.
All Correct Answers 2025-2026
Updated.
What was the significance of FDR's Brain Trust? - Answer This group devised measures to
implement that became New Deal policies. Members were primarily academics from
universities.
What is meant by the term 'New Deal' under FDR? - Answer Policies enacted under FDR that
created active intervention from a strong central government.
What does the phrase 'cradle to grave' mean? - Answer Individuals are dependent on
government support for their entire lives.
Friedman discusses 4 spending categories. What are they? - Answer 1.) Spending on yourself
2.) Spending your money on someone else
3.) Spending someone else's money on you
4.) Spending someone else's money on someone else
Which of Friedman's 4 spending categories results in the most efficient and wise allocation of
scarce resources? - Answer Spending your money on yourself. You best know your needs and
resources, and you can allocate them best.
What is the fundamental fallacy of the welfare state? - Answer Bureaucrats spending
someone else's money on other people leads to waste and corruption.
The modern welfare state can be traced back to which influences? - Answer Bismarckian
Germany
Industrial Britain
Sweden
What two contradictory phenomena occurred as a result of New Deal programs? - Answer
Widespread dissatisfaction with the explosion of welfare activities contrasted with continued
pressure for further expansion (p. 96)
What is the most important component of Social Security? - Answer Old age and survivors'
benefits. These account for 2/3 of total expenditures and 3/4 of the recipients.
, What measures does Friedman propose to 'wind down' Social Security? - Answer 1.) Repeal
the payroll tax
2.) Continue to pay existing beneficiaries
3.) Give workers who already earned coverage what they are entitled to
4.) Give workers who have not yet earned coverage a capital sum
5.) Terminate any further accumulation of benefits
6.) Finance payments under items 2, 3, and 4 out of general tax funds
What is Process Philosophy in its most basic essence? - Answer Process Philosophy sees
reality as an evolving entity based on change rather than on absolutes.
How does Process Philosophy relate to the expansive jurisdiction of the national government? -
Answer Process Philosophy leaked into government policy and began to see legislation as a
way to enact change and propel reality forward.
What is the Madisonian interpretation of Article 1 Section 8 Clause 1? - Answer Madisonian
interpretation is that the grand objects should be achieved through the enumerated powers.
What causes inflation? - Answer Monetary policy causes inflation.
How does inflation impact prices and the value of money? - Answer Inflation raises prices
while simultaneously lowering the values of money.
Why do inflationary policies distort price signals? - Answer Producers think demand has
gone up so they produce more at the same price but then realize that the price of the things
they buy has gone up as well
Explain: "Inflation is a monetary phenomenon arising from a rapid increase in the quantity of
money than in output" - Answer Inflation occurs when money is injected into the economy
at a rate higher than the economy's output (reflected in GDP)
Explain: "In today's world, government determines the quantity of money" - Answer As a
producer of money, government is often responsible for inserting money into and out of the
economy.
Explain: "There is only one cure for inflation: a slower rate of increase in the quantity of money"
- Answer This would allow the price system to stabilize and not be disrupted by the increase
while allowing for an elastic economy.
