CHAPTER 16: THE FEDERAL COURTS 1.

Which of the following statements best describes the consumer price index (CPI)? a. It is an index used to measure the trade deficit. b. It is an index used to measure inflation. c. It is an index used to measure budget deficits d. It is an index used to set prices for durable goods 2. Which of the following indicates that the United States has a mixed ecnomy? a. The Supreme Court regulates interstate commerce b. The federal government owns the means of production c. Congress plays no role in setting tariffs on imported goods d. The Justice Department can sue monopolistic companies e. Federal workers are not allowed to unionize 3. The purpose of antitrust policy is to a. ensure competition and prevent monopolies b. increase the amount of trust the public has in government c. to ensure a smooth relationship between the Federal Reserve Board and Congress d. increase tax revenue from private corporations e. reduce the likelihood of high unemployment 4. Which of the following statements accurately describes traditional Republican Party economic positions? i. Republicans place greater emphasis on full employment than Democrats do ii. Republicans tend to worry about inflation more than Democrats do iii. Republicans economic positions tend to appeal to the working class and unions iv. Republicans tend to favor higher income tax rates b. (a) I only c. (b) II only d. (c) II and III only e. (d) I and IV only f. (e) I, II, and III only 5. One way the government attempts to overcome inflation is by a. decreasing loan rates to make money more available to the public b. increasing the amount of credit available to the public c. decreasing the amount of money in banks, which raises loan rates and discourages people from borrowing d. limiting the number of bonds sold to the public e. increasing the amount of money in banks to help individuals and businesses acquire spending capital 6. Which of the following best describes the significance of the National Labor Relations Act? a. It prohibits labor unions within the federal bureaucracy b. It guarantees workers the right to unionize and bargain collectively c. It allows mediation to solve conflicts between public and private workers

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d. It allows companies to disband labor unions after giving 30 days advanced notice e. It prohibits labor unions from collecting union dues from federal workers Which of the following statements accurately describes the data in the graph on page 508 of the textbook? a. Unemployment does not vary by race b. Younger people have the lowest unemployment rates c. Blacks between the ages of 45 and 54 have roughly the same unemployment rate as Hispanics of the same age. d. A white worker below the age of 20 is less likely to be unemployed than a black worker between 25 and 34 years old. e. Age says little about unemployment All of the following are affected by actions of the Federal Reserve Board EXCEPT a. the federal budget deficit b. the money supply c. interest rates d. the availability of jobs e. inflation Which of the following segments of the population faces the most serious unemployment problems? a. middle-aged workers b. elderly workers c. women d. young adults e. white-collar workers Labor unions usually oppose free trade policies because they a. believe free trade policies lead to inflation b. believe free trade will force them to provide more benefits to their members c. believe free trade gives the government more control over union activities d. believe free trade will lead to growth in union membership at a rate too fast or unions to manage well e. believe free trade causes corporations to abandon workers in search of cheaper labor in foreign countries