Exam 4 with correct answers markedExam 4Question 1 2 / 2 pointsBeginning in 1929, the ___________ ___________ created a greater level of economic sufferingin America than any other previous depression or recession.1) Great Gatsby2) Great Depression3) Great Awakening4) Great CompromiseQuestion 2 2 / 2 pointsWhat is a possible evidence of declining economic virtue?1) a desire to share the financial burdens of extended family members2) eating vegetables from your year's supply of food3) increasing reliance on government economic protections4) a desire to workQuestion 3 2 / 2 pointsEntitlement programs are:1) Programs that have always been a part of American life.2) Programs designed to foster economic justice.3) Programs designed to protect the people from tyranny.4) Programs designed to encourage self-reliance.Question 4 2 / 2 pointsWhereas in the area of political corruption we are somewhat protected from corruption by auxiliary precautions, what is it in the market system that protects us from economic greed?1) governmental controls2) checks and balances3) supply and demand4) the division of economic powerQuestion 5 2 / 2 pointsUsing fiscal policy is an effective way to control inflation because it is easy for Congress to raisetaxes and cut government programs.1) True2) FalseQuestion 6 2 / 2 pointsTrue or False: The Federal Reserve System was created to give the American people more control over the money supply through their representatives in government, rather than have the money supply controlled by private banks, who might have their own motives.1) True2) FalseQuestion 7 2 / 2 pointsWhen the Federal Reserve lowers interest rates it is practicing:1) Fiscal Policy2) Political Policy3) Monetary Policy4) Economic PolicyQuestion 8 2 / 2 pointsThe laissez faire system of economics is tightly controlled market system that is run on a strict set of government rules.1) True2) FalseQuestion 9 2 / 2 pointsThe government has become more actively engaged in regulating the American economy since 1900.1) True2) FalseQuestion 10 2 / 2 pointsThe two challenges of the market system discussed in Topic 7 are:1) Fiscal and monetary policy.2) Supply and demand.3) Price instability and production instability.4) The challenge of a lack of economic virtue and the challenge of the unequaldistribution of wealth.Question 112 / 2 pointsEach of the following except one represents a negative aspect of American industrialization. Choose the one which is not a negative aspect.1) Some industrialists created mass production and modern management techniques.2) Some industrialists exploited the working people and the consumer.3) Some industrialists used enormous "private wealth" to buy and manipulate public authority and power.4) Some industrialists sought to create large monopolies through bribery, rebates, and price wars.Question 122 / 2 pointsWhich of the following is NOT one of the six principles of church welfare which President Monson says never change?1) work2) Making wise use of government assistance3) a year's supply4) caring for one's relativesQuestion 13 2 / 2 pointsWhich of the following ideas would not have been an inspiration for the people who called themselves progressives?1) Faith in reform2) Faith in science and progress3) Faith in the individual to affect change4) Faith in governmentQuestion 14 2 / 2 pointsThe best way to overcome the spirit of "entitlement" is to:1) Clearly recognize that entitlements are God's or the government's way of bestowing on us what is rightfully ours.2) Work to develop personal qualities of humility and gratitude.3) There is no valid reason for overcoming the spirit of entitlement.4) Demand that all forms of entitlement be eliminated from the government.Question 152 / 2 pointsWhich statement correctly describes a possible cause of sustained inflation since World War II?1) Pressure group politics has been decreasing, thus allowing businesses to raise their prices whenever they desire.2) Americans have come to fear inflation more than deflation, so theyoverreact to crises and make the problem even worse.3) It has been getting increasingly difficult to get certain resources, so the priceof those resources is continually going up.4) The Federal Reserve has been more and more reluctant to use monetary policy.Question 162 / 2 pointsWhich of the following is not a positive expression of economic virtue as discussed in this class?1) A willingness on the part of employers and employees to treat each other on the basis of honesty, decency, and fairness.2) A desire to work hard and express personal initiative.3) A willingness to save for rainy days and economic opportunities.4) A focus on money and personal wealth.Question 172 / 2 pointsWhich statement correctly describes an economic or social result of declining virtue in economicmatters?1) There will be less divisiveness and factionalism in society.2) The gulf between the rich and the poor will probably get smaller.3) Monopolies and unfair business practices will decrease.4) Exploitation of workers and resources will most likely increase.Question 18 2 / 2 pointsWhich statement represents a challenge of the market economy?1) The natural laws of supply and demand control prices.2) It leads to economic prosperity.3) Freedom of choice is given to consumers and producers.4) It is subject to price instability.Question 19 2 / 2 pointsWhich of the following would NOT be considered one of the basic forces that brought about the New Deal?1) The economic suffering of the American people.2) Herbert Hoover did more than any other president to overcome the effects of financial depression.3) The leadership and personal will of Franklin Roosevelt.4) The depth of the Great Depression.Question 202 / 2 pointsFiscal Policy is controlled by:1) The Treasury Department2) Federal Reserve3) Ben S. Bernanke4) The President and CongressQuestion 21 2 / 2 pointsWhich of the following is the appropriate fiscal policy to pull the nation out of a recession?1) Reduce the money supply and raise interest rates.2) Increase the money supply and lower interest rates.3) Reduce taxes and raise government spending.4) Increase taxes and reduce government spending.Question 22 2 / 2 pointsEconomic justice under the equality of conditions definitions requires all of the following except:1) A strictly laissez faire attitude.2) More government intervention in the market place.3) Progressive taxation.4)