CSM 405 FINAL EXAM REVIEW QUESTIONS AND ANSWERS
Fiscal policy is controlled by___
a) the president and congress
b) the American people
c) the supreme court
d) state governors and legislators - CORRECT ANSWER✅✅a) the president and congress
the projected deficit in 2029 is__
a) 1.7 million
b) 20.9 billion
c) 740 billion
d) 1.3 trillion - CORRECT ANSWER✅✅d) 1.3 trillion
which of the following were identified as having had an impact on the current budget deficit?
a) the financial and economic meltdown that occurred in 2007 and 2008
b) the economy recovery packages passed in the Busch and Obama administrations
c) the tax cuts and jobs act (TCJA) passed by president trump
d) all of these - CORRECT ANSWER✅✅d) all of these
which of the following were identified as a way to potentially reduce the deficit?
a) increase entitlement expenditures
b) increase discretionary expenditures
c) increase revenue through taxes or other devices
d) increase mandatory expenditures - CORRECT ANSWER✅✅c) increase revenue through taxes or other
devices
which of the following is considered to be discretionary fund expenditures?
a) social security
,b) medicare
c) foregin aid
d) medicaid - CORRECT ANSWER✅✅c) foreign aid
which of the following was identified as an argument against increasing fees for certain resources, such
as the national parks?
a) it would mean that no one would be able to visit the parks
b) it would mean that there would have to be a reduction in staff
c) it would mean that lower-income people could no longer afford to visit the parks
d) it would mean available to help maintain and staff the parks - CORRECT ANSWER✅✅c) it would
mean that lower-income people could no longer afford to visit the parks
one of the only areas related to revenue increases that sometimes generates public support is in the
category of___
a) property taxes
b) user fees
c) student loan interest
d) mortgage loan interest - CORRECT ANSWER✅✅b) user fees
the national debt began to soar in the___
a) 1950s
b) 1960s
c) 1970s
d) 1980s - CORRECT ANSWER✅✅d) 1980s
The term used to explain negative growth over two or more consecutive quarters is referred to as a___
a) recession
b) surplus
c) boom
, d) debt - CORRECT ANSWER✅✅a) recession
if the economy growth is too fast it can lead to___
a) a depression
b) a recession
c) damaging levels of inflation
d) deficit - CORRECT ANSWER✅✅c) damaging levels of inflation
which of the following was identifies as being an inevitable part of the U.S. economy?
a) recession
b) inflation
c) economic growth
d) unemployment - CORRECT ANSWER✅✅b) inflation
policymakers try to keep inflation to no more than about ___ per year
a)
b) 3
c) 4
d) 5 - CORRECT ANSWER✅✅b) 3
___ is a cornerstone not only of a strong economy, but also a satisfied electorate
a) unemployment
b) trade
c) inflation
d) growth - CORRECT ANSWER✅✅d) growth
which of the following would best show fiscal responsibility?
a) limited occurrences of federal deficient and debts
Fiscal policy is controlled by___
a) the president and congress
b) the American people
c) the supreme court
d) state governors and legislators - CORRECT ANSWER✅✅a) the president and congress
the projected deficit in 2029 is__
a) 1.7 million
b) 20.9 billion
c) 740 billion
d) 1.3 trillion - CORRECT ANSWER✅✅d) 1.3 trillion
which of the following were identified as having had an impact on the current budget deficit?
a) the financial and economic meltdown that occurred in 2007 and 2008
b) the economy recovery packages passed in the Busch and Obama administrations
c) the tax cuts and jobs act (TCJA) passed by president trump
d) all of these - CORRECT ANSWER✅✅d) all of these
which of the following were identified as a way to potentially reduce the deficit?
a) increase entitlement expenditures
b) increase discretionary expenditures
c) increase revenue through taxes or other devices
d) increase mandatory expenditures - CORRECT ANSWER✅✅c) increase revenue through taxes or other
devices
which of the following is considered to be discretionary fund expenditures?
a) social security
,b) medicare
c) foregin aid
d) medicaid - CORRECT ANSWER✅✅c) foreign aid
which of the following was identified as an argument against increasing fees for certain resources, such
as the national parks?
a) it would mean that no one would be able to visit the parks
b) it would mean that there would have to be a reduction in staff
c) it would mean that lower-income people could no longer afford to visit the parks
d) it would mean available to help maintain and staff the parks - CORRECT ANSWER✅✅c) it would
mean that lower-income people could no longer afford to visit the parks
one of the only areas related to revenue increases that sometimes generates public support is in the
category of___
a) property taxes
b) user fees
c) student loan interest
d) mortgage loan interest - CORRECT ANSWER✅✅b) user fees
the national debt began to soar in the___
a) 1950s
b) 1960s
c) 1970s
d) 1980s - CORRECT ANSWER✅✅d) 1980s
The term used to explain negative growth over two or more consecutive quarters is referred to as a___
a) recession
b) surplus
c) boom
, d) debt - CORRECT ANSWER✅✅a) recession
if the economy growth is too fast it can lead to___
a) a depression
b) a recession
c) damaging levels of inflation
d) deficit - CORRECT ANSWER✅✅c) damaging levels of inflation
which of the following was identifies as being an inevitable part of the U.S. economy?
a) recession
b) inflation
c) economic growth
d) unemployment - CORRECT ANSWER✅✅b) inflation
policymakers try to keep inflation to no more than about ___ per year
a)
b) 3
c) 4
d) 5 - CORRECT ANSWER✅✅b) 3
___ is a cornerstone not only of a strong economy, but also a satisfied electorate
a) unemployment
b) trade
c) inflation
d) growth - CORRECT ANSWER✅✅d) growth
which of the following would best show fiscal responsibility?
a) limited occurrences of federal deficient and debts
