CLEP Public Policy:Domestic & Economic Part 2 Practice Test >> Exam 1

Question 1 of 30
Date: 18/01/2019 23:36:56
Time Remaining :
1) The Sumptuary taxes are imposed on goods such as liquor‚ tobacco in order to discourage consumption or use of these goods as well as to raise revenue‚and these taxes also known as_________ taxes.
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2) At a given time‚ the economic condition of full employment in which no more than______________% of the population is unemployed (out of work).
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3) A free trade zone created under the President George H.W. Bush‚ _______________ was established in between the governments of Mexico‚ Canada‚ and the U.S. by taking away tariffs on each country’s product.
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4) An international organization responsible for supervising trade rules between nations‚ reducing quotas and tariffs and improving the fairness or trade practices. The ____________ was established to promote trade between different nations‚ evolved into the World Trade Organization (WTO).
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5) What was the purpose of The Office of Management and Budget (OMB)‚ an agency of the Executive Office of the President that was set up by the Treasury Department.
6) What are the committees in the House of Representatives is responsible for writing major tax laws‚ raising revenue‚ determining tariffs against foreign imports‚ overseeing entitlement programs‚ and supervising the Federal Reserve as well as the counterpart Senate Finance Committee‚ carries a great amount of power and influence for committee members?
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7) All American taxpayers‚ regardless of income status‚ ___________ tax system is applied‚ in which a single tax rate is applied & is usually supported by those who favor laissez-faire economics (economy with little or no government regulation).
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8) In order to regulate the supply of money in the economy‚ The ___________ ____________ System is a central banking system created in the U.S. in 1913; this regulation is achieved by actions such as setting interest rates and buying and selling government securities.
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9) Regardless of their asset or income status ‚ _____________taxes are taxes such as the U.S. federal sales tax that impose the same amount of money on everyone‚ and therefore‚ impose a greater burden on the poor than on the rich‚ relative to each group’s available resources.
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10) At a each stage of an item’s production and sale is currently utilized in many European countries‚ _____________‚ a national tax that is levied‚ but not in the U.S.
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11) A tax on profits made on the sale of a capital asset‚ such as a stock or piece of real estate is called as __________ ______________ tax.
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12) Countries that export more goods than they import have a trade ___________‚ such as oil-producing nations in the Persian Gulf region.
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13) The percentage of the labor force (all persons willing and able to work) out of work at a given time‚ is represented by the____________ rate.
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14) An economic term representing the total monetary value of all final goods and services produced within the U.S. in one year is known as the ___________ of the United States‚ an overall measure of the nation’s economic output.
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15) In an attempt to reduce the federal budget deficit‚ which had grown out of control due to increased defense spending and tax cuts‚ Legislation was best known as the _____________ that passed in 1985 and 1987 .
16) Over a period of time‚ a decrease in the purchasing power of money occurs known as __________‚ which is due to increase in the price of goods or services in the economy.
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17) Currently The government owes over $12 trillion‚ This is national_______________ money.
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18) In order to reduce taxable income and therefore lower the tax burden one is required to pay through means such as itemized deductions of business expenses‚ mortgage interest deductions‚ charitable giving deductions‚ etc‚ Tax __________ is a term used to describe the legal use of the tax codes.
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19) Federal Reserve Board uses three methods to regulate the availability of credit and control the monetary supply in the U.S. What are those three methods?
20) When high inflation and economic stagnation (as represented by high unemployment rates‚ etc.) occurs simultaneously‚ it is known as __________‚ which is unique‚ unusual economic situation.
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21) An international organizations is responsible for overseeing the global financial system by encouraging‚ facilitating‚ and monitoring global monetary cooperation‚ international trade‚ and currency stability. Select which of the following?
22) "To simplify the process of composing the federal budget‚ The 1990 Budget Enforcement Act‚ established two categories of government spending. 1) In order to balance the budget‚ ____________ spending is not required by law‚and can be cut‚ which includes areas such as education and defense.2) In order to fund entitlement programs‚____________ spending is required by law‚ and cannot be cut‚ and includes areas such as Social Security‚ payment on the national debt‚ and veterans’ pensions."
23) A process by which the government regulates the availability of credit and the supply of money circulating through the economy through the actions taken by the Federal Reserve Board‚ known as ?the Fed.? This is _____________ policy.
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24) A form of taxation‚ in which persons with less income will pay a lower percentage of their income in taxes than persons with higher taxable incomes; With __________ taxes‚ the tax rate is based on a scale and increases as the taxable amount increases; the federal income tax is an example of this type of tax.
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25) Which committees (House and Senate) are responsible for determining what legislative programs need to be funded and Which committees (House and Senate)are responsible for allocating funding proposed legislation‚ government programs‚ and government agencies ?

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