Cumulative Exam — Cumulative exam Answers

24 verified answers
4

All of the following statements about the activities of interest groups are TRUE except:

A
Interest groups may donate as much money as they wish to individual political candidates.
B
Interest groups are free to lobby public officials to vote for laws favorable to the organization.
C
Interest groups may sue in the court system to win rulings favorable to the organization.
D
Interest groups can campaign on behalf of candidates for public office.
5

Which of the following is NOT a goal of the Federal Reserve System?

A
to control inflation
B
to control unemployment
C
to maintain the balance of trade
D
to maintain a healthy economy
6

A free trade agreement is best described as an agreement between two countries to __________.

A
remove import and export barriers
B
create new trade quotas
C
reduce the volume of trade
D
create protectionist policies
9

__________ is a system where the government makes the decisions about the economy.

A
Capitalism
B
A pure market
C
A mixed market
D
Central planning
12

What is the main purpose of government propaganda?

A
to influence public opinion
B
to inform people about their rights as citizens
C
to persuade citizens to join the armed forces
D
to advertise government programs created for the benefit of the people
13

How can the federal government influence the economy?

A
change government spending levels
B
change tax levels
C
do both A and B
D
do neither A nor B
14

Which of the following is NOT a demand shifter?

A
price of a substitute good
B
consumer taste
C
economic stability
D
price of a complementary good
17

The Republican party would likely oppose all of the following causes EXCEPT:

A
lower taxes for the wealthy
B
more government intervention
C
less power to the states
D
shrinking the military
19

Countries create trade barriers when they are interested in protecting __________ goods from ____________ competition.

A
international . . . domestic
B
domestic . . . domestic
C
domestic . . . international
D
international . . . international

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