Exam 3 (Ch. 16-17)

Explanation
Domestic policy refers to public policy that focuses on issues within a nation, such as healthcare, education, and economic regulations. It is distinct from foreign policy, which deals with a nation's relations with other countries. The correct answer, "Domestic," accurately describes this policy that pertains to matters within a national unit.

Explanation
In order for a problem to be addressed by the government, it needs to be recognized and acknowledged as an important issue that requires attention and action. This recognition usually happens when the problem becomes part of the political agenda, which refers to the list of issues and topics that politicians and policymakers prioritize and focus on. By being included in the political agenda, the problem is more likely to receive the necessary attention, resources, and policy actions from the government.

Explanation
The process of formulating, adopting, and implementing a policy is collectively referred to as the policy-making process. This process involves identifying a problem, conducting research and analysis, developing potential solutions, selecting the most appropriate course of action, gaining approval from relevant stakeholders, and finally implementing and evaluating the policy. It is a comprehensive and iterative process that aims to address societal issues and achieve desired outcomes through the creation and implementation of effective policies.

Explanation
The first stage of the policymaking process is agenda setting. This refers to the process of identifying and prioritizing the issues that will be addressed by policymakers. It involves determining which problems or topics should be considered for policy development and which should be given the most attention. Agenda setting is crucial as it helps to focus policymakers' attention on specific issues and influences the direction and scope of policy decisions.

Explanation
When Congress holds hearings to obtain feedback from different groups on how a statute or regulation has affected those groups, it is engaging in policy evaluation. This process allows Congress to assess the impact of their policies and make informed decisions about whether to continue, modify, or repeal them. By gathering feedback from various stakeholders, Congress can understand the real-world consequences of their actions and make adjustments to better serve the needs of the affected groups.

Explanation
Social welfare policy refers to the various actions and initiatives implemented by the government to provide support and assistance to specific groups in society who may be vulnerable or in need. This can include programs and services aimed at helping the elderly, the sick, and those living in poverty. The goal of social welfare policy is to ensure that these individuals have access to essential resources and support systems that can improve their well-being and quality of life.

Explanation
Social security is a program that requires individuals to contribute a portion of their income through payroll taxes, which are levied on both employers and employees. These funds are then used to provide financial support and benefits to individuals who are retired, disabled, or unemployed. It is a form of compulsory saving that aims to provide a safety net for individuals and ensure their financial security in times of need.

Explanation
Medicare is a social insurance program where the federal government covers a portion of the expenses for medical care for retired individuals. It is designed to provide health coverage for people aged 65 and older, as well as certain younger individuals with disabilities. Medicare helps to alleviate the financial burden of healthcare costs for retired individuals, ensuring they have access to necessary medical services and treatments.

Explanation
Food stamps are government-issued coupons that can be used to purchase food.

Explanation
The given answer states that the total yearly cost of crime in the United States is 455 billion. This suggests that the financial impact of crime in the country amounts to a significant sum. It implies that the costs associated with criminal activities, such as law enforcement, legal proceedings, and property damage, are estimated to reach a staggering 455 billion dollars annually. This figure highlights the economic burden that crime places on society and underscores the importance of addressing and preventing criminal behavior.

Explanation
In France, almost all pension payments, specifically 99 percent of them, are directly funded by the government. This indicates that the majority of retirees in France rely heavily on government support for their pension income.

Explanation
Supplemental Security Income (SSI) programs are designed to provide a minimum income for individuals who are aged, blind, and disabled. These programs aim to support and assist those who are in need due to their age, visual impairment, or physical disabilities. By establishing a nationwide minimum income, SSI programs help ensure that these vulnerable populations have access to basic financial resources and support to meet their daily needs and maintain a certain standard of living.

Explanation
Under the new welfare system established in 1996 by the Welfare Reform Act, the federal government transfers funds to the states that are specifically designated for providing temporary assistance to needy families. This means that the federal government no longer directly administers these funds, but instead gives them to the states, who are responsible for distributing the funds to eligible families in need of temporary financial assistance.

Explanation
The earned income tax credit program was created to provide rebates of Social Security taxes to low-income workers. This program aims to alleviate the financial burden on low-income individuals by allowing them to receive a refund of a portion of the Social Security taxes they have paid throughout the year. By providing this tax credit, the government is able to support and incentivize work for those with lower incomes, ultimately helping to reduce poverty and increase financial stability for these individuals.

Explanation
Property loss is about 10 percent of the total cost of crime. This means that out of the total cost incurred due to criminal activities, property loss accounts for approximately 10 percent. This statistic highlights the significant impact of property loss on the overall cost of crime, indicating that it is a substantial component.

Explanation
The statement suggests that the "war on drugs" is a significant financial burden for the federal government, costing them more than 16 billion dollars annually. This implies that the government is allocating a substantial amount of resources towards combating drug-related issues, such as prevention, enforcement, and treatment programs. The high cost indicates the scale and importance of this ongoing effort to address drug-related problems in society.

Explanation
Economic policy refers to the set of actions and measures implemented by the national government to regulate and stabilize the overall business activity within the country. This includes policies related to fiscal management, monetary policy, trade regulations, and other economic interventions aimed at promoting growth, reducing unemployment, and controlling inflation. By implementing effective economic policies, governments can mitigate the volatility and fluctuations in the nation's business activity, creating a more stable and predictable economic environment.

Explanation
Monetary policy refers to the actions taken by the central bank of a country to control the money supply and interest rates in order to achieve economic stability and growth. In the United States, the central bank is known as the Federal Reserve System. Therefore, it is responsible for determining and implementing monetary policy in the country. The Federal Reserve System makes decisions regarding interest rates, open market operations, and reserve requirements, among other tools, to influence the economy and promote its objectives.

Explanation
Fiscal policy refers to the use of changes in government expenditures and taxes to influence and regulate national economic variables. This includes government spending on public goods and services, as well as adjustments in tax rates and policies. By implementing fiscal policies, governments aim to stabilize the economy, promote economic growth, and control inflation.

Explanation
Members of the Federal Reserve System's board of governors are appointed by the president and confirmed by the senate. This is because the Federal Reserve is an independent entity within the government, and the president plays a crucial role in selecting individuals who will serve on the board. However, the confirmation process by the senate ensures that there is a system of checks and balances in place, allowing for a thorough evaluation of the nominees' qualifications and ensuring that they are suitable for the position.

Explanation
The national debt refers to the total amount of money that the national government owes as a result of borrowing. It represents the accumulated deficits and loans taken by the government over time. The national debt is often used to finance government spending and can have significant implications for the economy and future generations.

Explanation
The interest on U.S. Treasury bonds is paid by the federal government through the collection of federal taxes. This means that the government uses the money it receives from taxpayers to pay the interest owed on these bonds. The collection of federal taxes is an important source of revenue for the government, which it utilizes to fund various expenses, including the payment of interest on its debts.

Explanation
The correct answer is national government; state; local. In a federal system, the national government has the authority to implement national policies. However, since power is also shared with state and local governments, their cooperation is necessary for the successful implementation of these policies. This ensures that decisions are made at multiple levels of government, taking into account the specific needs and circumstances of different regions and communities.

Explanation
Medicare is a government-funded healthcare program in the United States. It is financed through payroll taxes, which are paid by both the employer and the employee. These taxes are deducted from the employee's wages and are also contributed by the employer on behalf of the employee. This funding mechanism ensures that both the employer and the employee share the responsibility of financing Medicare.

Explanation
The correct answer is "declining" because it suggests that there are fewer people who are currently working compared to the number of people who are retired. This implies that the workforce is shrinking and there is a larger proportion of the population that is no longer in the labor force.

Explanation
During periods of recession and high unemployment, the government should pursue an easy-money policy. This means that the government should increase the money supply and lower interest rates to stimulate economic activity. By making it easier for businesses and individuals to borrow money, it encourages spending and investment, which can help to boost economic growth and reduce unemployment. This policy is often used as a tool to counteract the negative effects of a recession and stimulate economic recovery.

Explanation
During periods of rising inflation, the Federal Reserve will typically reduce the rate of growth in the amount of money in circulation. This is because when there is too much money in circulation, it can lead to an increase in demand for goods and services, which in turn drives up prices. By reducing the rate of growth in the amount of money in circulation, the Federal Reserve aims to control inflation and stabilize the economy.

Explanation
When there is a federal government deficit, it means that the government is spending more money than it is receiving in revenue. To cover this deficit, the government borrows money by issuing bonds and other forms of debt. The accumulation of this debt over time is known as the national debt. Therefore, every time there is a federal government deficit, the national debt increases.

Explanation
Keynesian economics suggests that in a recession, the government should undertake actions to stimulate the economy. During a recession, there is a decrease in economic activity, which leads to a decline in consumer spending, business investment, and overall economic growth. Keynesian economics argues that during these times, the government should step in and increase government spending or cut taxes to boost aggregate demand and stimulate economic growth. This can help to create jobs, increase consumer spending, and restore confidence in the economy.