1. Fully define the term "public policy." What are the goals of economic policy?
2. Government is said to be necessary to allow a market economy to be established. How? Is this true?
3. How can government correct for market failure? Research current events and detail how the government is attempting to correct for problems caused by the housing crisis.
4. Outline taxing policy in Texas. What are the sources of funds in Texas and where does the money go?
5. Answer question 4, but this time for the national government.
6. What is the difference between fiscal policy and monetary policy?
7. Outline the budget process in the state of Texas.
8. What is the Federal Reserve? What doe sit do? What tools can it use to accomplish its objectives?
9. What does the term "policy of redistribution" refer to? What is the distribution of income in the United States? Does it pose any problems for governance? Explain why or why not.
10. What part of the U.S. budget is controllable? What part is uncontrollable? What are the consequences of this?
