Fiscal Policy and EPA Notes Flashcards
(26 cards)
What is fiscal policy?
Fiscal policy refers to the use of government spending and taxation to influence the economy.
True or False: Fiscal policy can be used to combat inflation.
True
What agency is primarily responsible for enforcing environmental regulations in the United States?
The Environmental Protection Agency (EPA)
Fill in the blank: The main goal of fiscal policy is to manage __________ and stimulate economic growth.
aggregate demand
Which two tools are commonly used in fiscal policy?
Government spending and taxation
What does the EPA aim to protect?
The environment and public health
Multiple Choice: Which of the following is a component of fiscal policy? A) Tax cuts B) Environmental regulations C) Monetary policy D) Import tariffs
A) Tax cuts
What is an example of expansionary fiscal policy?
Increasing government spending or decreasing taxes
True or False: The EPA has the authority to regulate greenhouse gas emissions.
True
What is the primary purpose of the EPA?
To enforce laws that protect the environment and human health
Fill in the blank: Fiscal policy can be categorized into __________ and contractionary policies.
expansionary
Which act established the EPA?
The National Environmental Policy (NEP) Act of 1969
What is contractionary fiscal policy?
A policy aimed at reducing government spending or increasing taxes to slow economic growth.
Multiple Choice: Which of the following is NOT a function of the EPA? A) Regulating air quality B) Setting tax rates C) Managing waste disposal D) Protecting endangered species
B) Setting tax rates
What is the relationship between fiscal policy and economic cycles?
Fiscal policy can be adjusted to counteract economic downturns or overheating.
True or False: The EPA can issue fines for non-compliance with environmental laws.
True
Fill in the blank: The __________ is a major tool for the EPA to enforce environmental laws.
Clean Air Act
What is the effect of tax cuts on aggregate demand?
Tax cuts generally increase aggregate demand by leaving consumers with more disposable income.
Multiple Choice: Which type of fiscal policy is aimed at stimulating the economy? A) Contractionary B) Expansionary C) Neutral D) Restrictive
B) Expansionary
What are the potential downsides of expansionary fiscal policy?
It can lead to budget deficits and increased national debt.
True or False: The EPA’s regulations can impact economic activities.
True
What is the significance of the Clean Water Act?
It regulates discharges of pollutants into U.S. waters and sets quality standards for surface waters.
Fill in the blank: The __________ requires federal agencies to assess the environmental effects of their proposed actions.
National Environmental Policy Act (NEPA)
What is the main purpose of the EPA’s enforcement actions?
To ensure compliance with environmental laws and protect public health.
