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Why does the Protective Democratic Model call for a passive citizenry with respect to
- because government should protect everyone’s liberty from the selfish and
- acquisitive human nature of others that manifests itself when citizens are active in
What are Mortgage-Backed Securities (M.B.S.s)?
A bundle of mortgage payments sold as a single derivative to investors
The Declaration of Independence, written by Thomas Jefferson, stated that:
- people have an inalienable right of liberty, which is not merely granted by the
- people have the duty to overthrow government when a pattern of abuse is
- the colonies are legally separating from Great Britain
Representation in the Confederation Congress (under the Articles of Confederation) was
based on which of the following formulae:
the one-house Congress was based on state equality (one state, one vote)
According to James Madison in Federalist Paper #10, what is "the first object of
to protect unequal abilities to acquire property
According to James Madison in Federalist Paper #10, the "most dangerous" faction is:
one based on majority
Which of the following did James Madison in Federalist Paper #10 believe would guard
against the most dangerous faction?
a large republic
Why did a Mortgage-Backed Security (M.B.S.) seem like a good investment?
- An investor could purchase insurance on it, it was rated as safe, and the investor
- did not have to worry about stock market fluctuations
As stated in lecture, what is one interpretation of Rousseau's statement, "Man is born free,
but is everywhere in chains?"
- modern society has institutionalized inequalities that developed over time in the
- state of nature
According to the broad spectrum of social contract theory, why does government exist?
- government exists because individuals seek self-preservation and use rationality
- to form government (since the state of nature can no longer guarantee long term
What are two reasons that a Greek style city-state may not work well in the United States?
- scale (US population is too large) and exclusivity (only select males participated
- in the city-state)
Why do some people blame the Federal Reserve for bursting the housing bubble?
- The Federal Reserve raised the federal funds rate from an all time low in 2004 to
- 5.25% in 2006, causing adjustable rate mortgages to increase its interest rates
Why did some banks and insurance companies (e.g., A.I.G.) go bankrupt and require
taxpayer dollars to operate after the burst of the housing bubble?
- These banks and insurance companies were over-leveraged, operating mainly on
- borrowed money
What was the key component of the Glass-Steagall Act of 1933?
- It separated the activities and treasuries of commercial banks from investment
According to James Madison in Federalist Paper #10, what is the “most common a durable
source of faction”?
The unequal distribution of property
In Federalist Paper #51, Madison describes:
- the solution to finding a government to control the citizenry and a government
- that controls itself, which is federalism and the separation of powers.
In Federalist Paper #51, Madison explicitly describes his thoughts on human nature. His
view of human nature can be described as:
- negative, men are not angels and are too ambitious once they achieve a powerful
- position in government
Thomas Hobbes views the state of nature as:
negative, claiming that the state of nature is similar to the state of war
The British style of government is characterized by:
the fusion of the executive and legislative responsibilities into a Cabinet
The President of the United States must operate within a system of checks and balances, but
what mechanisms prevent the Prime Minister of England from instituting unpopular policies?
the general election and his/her own political party
Who espouses the version of social contract theory where individuals relinquish their rights
in the state nature to an all powerful authority in return for coerced perpetual peace?
According to James Madison in Federalist Paper #10, a republic differs from a democracy in
two ways, which are:
- In a republic, a political representative participates in day-to-day governing, and a
- republic can accommodate more citizens and a larger territory
What was the purpose of the 85 essays that make up the Federalist Papers?
- To convince the voting population that the U.S. Constitution was the best
- governing document to strengthen the Union and national government
A grant given to a state from the federal government specifying exactly how the money
should be spent within a policy domain (e.g. highway construction money being spent on
repaving), is an example of:
What was the key component of the Commodity Futures Modernization Act (a.k.a. Gramm-
Leach-Bliley) that may have exacerbated the severity of the financial crisis?
It overturned Glass-Steagall of 1933
The doctrine that the federal government should financially support large financial
institutions if those institutions fail because their failing will create economic and financial
hardship is called:
Too Big To Fail
What was the Troubled Asset Relief Program (TARP) designed to do?
- Make the government buy poor performing Mortgage-Backed Securities at fair
- market value, but ended up giving most of the $700 billion of TARP money to
- banks directly
According to Schmidt et al, “a form of government that controls all aspects of the political
and social life of a nation,” is called:
A totalitarian regime
According to Schmidt et al, what form of government is defined as “rule by the best,” but in
reality it is “rule by an upper class”?
According to lecture, what characterizes enlightenment thought?
empirical observation leads to finding the truth
What does Schmidt et al mention as a criticism of pluralist theory (a.k.a. pluralism)?
- Poor citizens are under-represented by the existing set of interest groups, while
- rich citizens are over-represented
Article I, Section 8 of the U.S. Constitution is typically referred to as:
the enumerated/expressed powers of Congress
According to Schmidt et al, a “set of ideas, values and ways of thinking about government
and politics shared by all citizens,” is called:
A political culture
The Supreme Court in Kelo v. City of New London (2005) decided:
- The use of eminent domain by the government to give land to private developers
- is constitutional
According to Schmidt et al, the Mayflower Compact:
- Was an agreement among a small group of individuals to live together, equal
- under the law
According to Schmidt et al, the First Continental Congress decided to:
- Raise troops in the colonies
- Boycott British trade
- Hire spy committees in each city to catch violators of the British trade boycott
The Connecticut (or Great) Compromise created:
- A bicameral national legislature; the number of representatives in the House of
- Representatives determined by state population, and the Senate based on state
The 3/5 Compromise is:
- Slaves count as 3/5 of a person when determining state population, increasing the
- amount of representatives a state receives in Congress, especially southern states
Article II of the Constitution references which branch of government?
According to Hudson, the separation of powers system is characterized by:
A lack of responsiveness to the majority
According to Schmidt et al, one argument against having a federal system of government is:
- Regional inequalities (e.g. inequality in education spending, building safety
Which of the following is an example of a concurrent power?
Power to tax
In Gibbons v. Ogden (1824), the Supreme Court:
- Ruled that commerce should be interpreted in the broadest sense, to encompass all
- commercial business dealings
According to Schmidt et al, the first national income tax was passed to:
Pay for the huge debt caused by the Civil War
The Tea Act of 1773 passed by the British Parliament and imposed on the American colonies
- The East India Tea company (a multinational corporation) could sell their tea
- without tax
On August 29th, 1786, in Northampton, Mass., a group of over 2000 men stormed a
courthouse to stop legal proceedings on farm foreclosures, debt repayment, and debt
imprisonment. This event began what is known as:
According to Hudson, what is the Jeffersonian Model of governing?
- To overcome the lawmaking difficulties caused by the separation of powers with
- strong political party discipline
What does the Prisoner’s Dilemma tell us about the libertarian ideology?
- It is wrong to assume that an individual can obtain full maximization of his/her
- goals without the help of others
Who argues that the state of nature is pre-political, but not pre-moral, and that the object of
government is to protect private property?
According to Charles Beard, the U.S. Constitution represents:
- The Framers’ intent to preserve the existing unequal distribution of property and
- wealth in the United States