Government_Ch10_Homework-2

=**Government Chapter 10 Homework #2**= Use your knowledge, your notes and your Internet guide to answer the following:

1. Where does money for Social Security, Medicare, Medicaid, unemployment, welfare, and money for health care for those who can't afford come from? (A) tax payers (B) Congress (C) government securities (D) goods sold by the federal government (E) all (F) none

2. Why might the Federal Reserve Board lower interest rates for banks? (A) banks are low on money (B) encourages banks to borrow more money at low interest to give more loans to customers (C) so people go to the banks rather than the Fed (D) it never does that (E) all (F) none

3. Benefits that Congress has provided by law such as Social Security, Medicare, and unemployment are (A) earmarks (B) appropriations (C) securities (D) entitlements (E)a ll (F) none

4. How does America's free enterprise system encourage entrepreneurship? (A) less incentive to work hard since wages are determined by central planners (B) workers take over the businesses (C) hard work brings financial rewards so ithere is incentive to produce a good or service that people need (D) it's a freedom in the Bill of Rights

5. Medicare is not considered public assistance because (A) it goes to the elderly, while public assistance programs go to the poor (B) it deals with health care, while public assistance deals with money (C) it gives money to people, while public assistance does not (D) it's funded with tax dollars, public assistance is not

6. Which is a characteristic of a recession? (A) low unemployment (B) high stock market (C) business expansion (D) high consumer spending (E) all (F) none

7. Money that has value just because a government says so is (A) sound money (B) gold (C) paper money (D) fiat money (E) all (F) none

8. How do social insurance and public assistance taxes show up on your pay stub? (A) federal (B) FICA (C) SSI (D) insurance (E) all (F) none

9. Media and public opinion largely help impact (A) treaties (B) presidential decisions (C) bureaucratic regulations (D) domestic policy

10. The average price of goods and services is called the (A) Fiscal Policy (B) Monetary Policy (C) Consumer Price Index (D) Grocery Store Figures (E) all (F) none

11. How do international events impact prices?

12. How can government actions impact prices?

13. How can weather conditions impact prices?

14. In terms of policy, conservatives favor o and s--- while liberals favor e---

15. Write a sentence COMPLETELY explaining public assistance programs:

16. Write a sentence COMPLETELY explaining social insurance programs:

17. Write a sentence COMPLETELY explaining the difference between microeconomics and macroeconomics:

18. What is the biggest indicator as to how the government is doing?

19. What is the future problem with Social Security's sustainability?

20. What is Medicare's future problem in terms of sustainability?

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