Public Policy

Question 1

Purposes of Public Policy

Answer 1

Three Purposes:

• Solving a Social Problem
• Countering Threats
• Pursuing An Objective

Question 2

Issue-Attention Cycle

Answer 2

Requires policy makers to act quickly, before the public becomes bored and loses interest

Question 3

Incrementalism

Answer 3

The slow, step-by-step approach to making policy

Question 4

Agenda Setting

Answer 4

Identifies the social and economic problems, redefines them into political issues, and ranks them in order of importance

Question 5

Policy Formulation/Adoption

Answer 5

Can be accomplished through the legislative process in Congress or by using executive orders

Question 6

Policy Implementation

Answer 6

Puts the policy into effect by enforcement through the appropriate government agency

Question 7

Policy Evaluation

Answer 7

Seeing whether or not the policy implemented actually works

Question 8

Policy Fragmentation

Answer 8

Where many pieces of legislation deal with parts of policy problems but never deal with the entire problem

Question 9

Mixed Economy

Answer 9

Both government and private industry play a role in the economy

Question 10

Laissez-Faire

Answer 10

Belief that the government should never become involved in the economy

Question 11

Keynesian Economics

Answer 11

Holds that the government can smooth out business cycles by influencing the amount of income individuals and businesses can spend on goods and services

Question 12

Deficit Spending

Answer 12

Funds raised by borrowing rather than taxation

Question 13

Supply-Side

Answer 13

Argument that the government should cut taxes and spending on domestic programs to stimulate greater production

Question 14

Reserve Requirement

Answer 14

The amount of money banks are required to keep on hand

Question 15

Discount Rate

Answer 15

The interest banks pay to the Federal Reserve Banks for borrowing money

Question 16

Open Market Operations

Answer 16

The Federal Reserve can buy/sell government bonds

Question 17

Office of Management and Budget (OMB)

Answer 17

Responsible for initiating the budget process

Question 18

House Ways and Means Committee

Answer 18

Deals with the taxing aspects of the budget

Question 19

Authorization Committees

Answer 19

Decide what programs Congress wants to fund

Question 20

Appropriations Committees

Answer 20

Decide how much money to spend for those programs that have been authorized

Question 21

Budget Reform Act of 1974

Answer 21

Created the Congressional Budget Office

Question 22

Congressional Budget Office

Answer 22

Has budget committees in both houses of Congress that set their own revenue and spending levels

Question 23

1990 Budget Enforcement Act

Answer 23

Was an effort to streamline the budget process and make it easier to arrive at a compromise budget

Question 24

Mandatory Spending

Answer 24

Spending that is required by law in order to fund programs (Social Security, Entitlement Programs, Medicare)

Question 25

Discretionary Spending

Answer 25

Spending that is not required by law to fund programs (Defense, Education, Highways, Research Grants, and Government Operations)

Question 26

Balance of Trade

Answer 26

The ratio of imported products to exported products

Question 27

Trade Defecits

Answer 27

Occur when imports exceed exports and cause wealth to flow from a nation

Question 28

General Agreement on Tariffs and Trade (GATT)

Answer 28

Works to lower tariffs and quotas and reduce unfair trade practices (Group evolved into the World Trade Organization (WTO))

Question 29

North American Free Trade Agreement (NAFTA)

Answer 29

United States, Canada, and Mexico effectively removed import tariffs from one another

Question 30

Social Insurance Programs

Answer 30

Are national insurance programs into which employers and employees pay taxes

Question 31

Public Assistance Programs

Answer 31

Are a result of condition and a government responsibility to help the needy

Question 32

Cost of Living Adjustment (COLA)

Answer 32

Help recipients of Social Security maintain the standard of living (Put a strain on Social Security)

Question 33

Medicare

Answer 33

Provides government assistance to people older than 65 for health care

Question 34

Medicaid

Answer 34

Provides medical and health-related service for low-income parents, children, seniors, and people with disabilities

Question 35

Supplemental Public Assistance Programs (SSI)

Answer 35

Help the disable and the aged who are living at or near the poverty level

Question 36

Food Stamps

Answer 36

Meant to improve the diet and increase the buying power of the poor

Question 37

Welfare Reform Act (1996)

Answer 37

Meant to reduce the number of people living on public assistance (Established TANF, required adults to find work within two years, placed a limit of 5 years to live off of welfare, prohibits illegal immigrants from getting assistance)

Question 38

Patient Protection and Affordable Health Care Act (Obamacare, 2010)

Answer 38

Allows the federal government to fine individuals who do not participate in an insurance program