Chapter 18 Economic Policy

Study Questions (with Answers)

1)What is the purpose of antitrust policy, and how has it been used in the United States?

2)What kind of economic system does the United States have, and how does that affect economic policy?

3)Discuss two Nineteenth and Twentieth-Century national government responses to industrialization.

4)Discuss the impact of the Wagner Act.

5)Define and discuss deregulation. Why did it become popular in the 1970s and 1980s, and what impact has deregulation had?

6)Discuss the Role and the responsibilities of the Environmental Protection Agency.The role of the EPA is to develop and enforce environmental laws presented by congress. Their responsibilities are to set the standards for programs and issue permits to monitor the states to make sure they are meeting the standards.

7)What is Superfund? Superfund is the federal governments program to clean up waste sites to protect to environment and humans.

8)Explain the concepts of laissez faire and business cycles. How are they related? Laissez faire is when the government take a hands off approach to the economy. Buiness cycles are the fluctuation between expansion and recession that is a part of the modern capitalist economies. When the country is in recession the government can not to do anything to help stimulate the economy if they have a laissez faire policy.

9)Compare and contrast social and economic regulation.

10)Compare and contrast deficits and debts.

11)Explain Gramm-Rudman-Hollings.

12)Discuss how budget surpluses have changed the political debate about economic policy.

13)What are the roots of government intervention in the economy?

14)The New Deal brought about a number of reforms in how the national government dealt with the issue of economic regulation. Discuss the five areas highlighted in the chapter.

15)Discuss the Federal Reserve
The Federal Reserve System is the central banking system for the United States. It is a quasi-public system, with a presidential appointed board of governors. It also is compiled of 12 Federal Banks around the country in order to keep everything as diverse as possible. The fed also deals with interest rates and deals alot with the Stock Exchange.

16)Discuss the budgetary process.

17)How and why has the national government been involved in environmental protection? Give specific examples.

18)What are the primary functions of the Food and Drug Administration?

19)What are the main provisions of the Taft-Hartley Act?

20)What is the main agency for making monetary policy in the government? Who chooses its leaders, and how are they removed from direct control by either the president or Congress? Is this appropriate? Explain.

21)Explain the difference between mixed economies, capitalist economic systems, and laissez-faire economic systems. Which best describes the economic system in the United States? Why?

22)How does a high unemployment rate or high inflation affect the way that Americans vote? Is there logic behind how voters view the parties in regard to addressing unemployment or addressing inflation? Why are the parties and elected officials limited in how they can affect the economy? Explain.

23)What is the main agency for making monetary policy in the government? Who chooses its leaders, and how are they removed from direct control by either the president or Congress? Is this appropriate? Explain.

24)Explain the different approaches to monetary and fiscal policy. What are their effects on the economy?

25)Identify the instruments available to government for managing the economy and explain their effects. What are the obstacles to controlling the economy?

26)How have the government's economic policies shaped the areas of agriculture, business, consumer, and labor policy?

27)How do the Consumer Products Safety Commission and the Federal Trade Commission regulate business in America? Do they protect the consumers adequately? Explain.

28)Discuss the economic policy of protectionism. What are its advantages and disadvantages?

29) What is the government's role in stabilizing the economy?
The government can so a couple of things to stablize the economy. one example is what they are doing with the current problem of being in a recession. They have sent out checks to families in hope that they will go out and spend it to boost the economy a little bit. They have also lowered the interest rates so that people can afford to take out big loans so they can buy houses, whose market has also slowed down with the economy.

30) What is the economics of government environmental regulation?

31) Identify and illustrate the types of policies the federal government has used to influence the general health of the economy and discuss the current debate about those policies.