Policy Making Test
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What are the two kinds of majoritarian politics?
- Everyone benefits from a policy
- Everyone pays for a policy
How to the two types of majoritarian politics complicate the politics of taxing and spending?
One groups wants low taxes and no deficit while the other wants generous spending on cvurrent programs while and the creation of new ones.
Economic philosophy that believes inflation occurs when theres too much money chasing to few good. Solution is to have a steady increase in the money supply at an equal rate to the production of goods.
Economic philosophy that states thew economy will not fully operate at full employment and low inflation level. Solution would be to find a perfect balance and know when to take out money.
Define economic planning
Economic philosophy that asks the government to plan some part of the country's economic activity
Define industrial policy
Government planning or subsidizing investments in industries that need to recover or in new industries that coul replace them
Economic philosophy that says sharp tax cuts will give people an insentive to work, save, and invest,.
Define fiscal policy
The attempt to use taxes and expenditures to effect the economy; buidgeting and appropriating money that is already in the economy; handled by the president and Congress
Define Budget deficit
when the goverment spends more that in takes in, putting more money into the economy
Define budget surplus
when the government takes in more money than it spends; thus taking money out of the economy
Define monetary policy
An attempt to use the amount of money and bank deposists and the price of money to affect the economy; the supply of money in the economy; handled by the federal reserve
An economic system which individuals and corporations own the principle means of production and seek profits
Define a mixed economy
An economic system in which the government is deeply involved in the economic deicisions through its tole as regulator, consumers, emploiyer, and borrower.
What is the role of the Counsil of Economic Advisors/
The CEA is an impartial group of experts resonsible for forecasting economic trends, analyzing economic issues, and helping prepare economic reports that the President send to Congress every year
What is the roel of the Office of Managment and Budget
Employs skilled economist who try to estimate the amount of money that will be spent by federal agencies, negotiates that size of budgets with departments, and makes sure that legislative proposals are in accordance with the president program
Describe the Budget Process
The president submits the budget to both Houses of COngress, the two budget committes study the budget and get an analysis from the CBO. Each committe then submits a budget resolution to its house. From May till the summer, Congress adaptd and appropriates the duget resolution. After the committee approves it, it goes to the President to sign it.
What are entitlements?
Claims for government funds that cannott b abriged without violating the rights of the claimaint. Affects the federal budget by controllign the amount of money that goes in and out of the economy.
How did the Congressional Baudget Act of 1974 change the budget process?
It forced committes to act on the budget together rather than seperately.
An automatic, across the board cut in certain federal programs that are triggered by law when Congress and the President cannot agree on a spending plan
What is the Gramm-Rudman Act?
An act that was mad eto put a cap on spending by requiring the budget to be automatically cut until the federal deficit dissappered.
How was welfare reformed by the Welfare Reform Act of 1996?
It required recipients to find a job within two years and limited the time a person could recieve welfare to two years.
What are ther limits on the Secretary of State to direct forgien policy?
The Secretary of State is unable to coordinate and direct enormous forgein policy establishments
What is the National Security Council?
The NSC is a group that helps the president deal with forgein, military, and economic policy that affects national security. The coordinator of this gtroup is the national security advisor.
What is the "rally-around-the-flag" effect?
Term used to describe great public suppoort during a tiem of military crisis.
Define military-industrial complex
The alliance between key military, governmental, and sorporate decision nakers involved in weapons procurment and military supports system.
What are some factors thaat influence the defence budget?
- How much money the defense program has
- How the defene programs divides its funds
- How many weapons they need
- How many people are in the army
Why are there cost over runs on big ticket items?
- People underestimate the cost
- Hard to know how much an item that has never been made will cost
- Those who ask for items are gulty of gold plating. which is very expensive
- New weapons ar eonly produced by one company, which limits competition
- When Congress cuts the military budget it increase the tiem it takes to make weaposn to save moeny
What is given the lowest priority in budget making for the military?
Readiness because it doesnt have any constituencies which causes it to not have any congressinal defenders.
What did Title 7 accomplish
It prohibitted gender discrimination in the workplaces, extended to sexual harassment
What did Title 9 do?
provided equal funding for all programs that recieve federal funding
What did the Rehabilitation Act of 1973 do?
It made it illegal to discriminate based on disability
Two cases that are the same but deal with different instances that are combined into one big case.
What is Gross Domestic Product?
All the goods and services in a country produced in a certain year.
What is consumer price index?
Key measure of inflation that relates to the rise of prices over time.
What is a recession?
A drop in GDP for 6 consecutive months
What is a depression?
When employment is at 20%
What is quantitative easing?
Selling and buying bonds to stimulate the economy
How does the Fed regulate the economy
- -Setting the federal fund ratre/interest rates
- -Quantitative easing
What oes the International Monetary Fund do?
Stabalizes currency with trade
What dies the World Bank do?
gives loans to developing countries to help build infestruture
What would you like to do?
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