Public Policy Exam

What type of policy collects payments from the few but benefit the many?

What type of policy tends to collect payments from the many but benefit the few?

When the private market fails to produce a good at the level that society wants

Goods that are non excludable and non rival

taxes you pay on money you recieve from various sources such as a job

These economists believe that government incentives for the middle class will help increase demand during a recession

These economists believe that government incentives for businesses will help stimulate the economy during a recession

What is the difference between mandatory and discretionary spending

What type of taxes do supply side economist favor?

Goods that are non excludable but are rival and can be overused

What type of taxes do Keynesian economist favor?

What type of policy takes money from one group and gives it to another group?

Goods that are excludable and rival

The final cost of all goods and services in an economy in a given month or year; is a measure of total economic output

What does the government do when it spends more than the revenue it receives in taxes?

taxes you pay when you buy something

helps low-income people with their health care expenses so that people can get healthy and stay healthy.

Why does the government have a vested interest in keeping people employed

an amount of money citizens and business are required to pay to the government

What is the origin of supply side economics?

At what point in time do Keynesian economist say that stimulus should be cut?

What is the largest budget item of the federal government?

Why do Keynesian (demand) economists target stimulus money on the middle class?

provides some income to retired people and minor children of a parent who has died.

What tax does the federal government get the most revenue from?

Why is it so challenging for congress to cut spending?

Believe that the key to economic growth is the gov't to stay out of the economy

When a person makes an income from something like a job, who else gets paid?

Goods that are excludable and can be non rival if maintained

When the economy fails to grow for two (2) consecutive quarters

Why do supply side economists want to cut taxes and regulations on businesses?

Cash payments for employees who lose their job through no fault of their own

commonly known as “food stamps,” allows people to buy nutritious food

When the government spends more than it receives in taxes