q1. public policy process a1. the political interactions that lead to the emergence and resolution...
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Unit VPublic PolicyVocabulary
Chapters 15-17
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Q1. Public policy process
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A1. The political interactions that lead to the emergence and resolution of public policy issues.
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Q2. A system of production and consumption of goods and services that are allocated through exchange among producers and consumers
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A2. economy
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Q3. A classic economic philosophy that holds that owners of business should be allowed to make their own production and distribution decisions without government regulation or control
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A3. laissez-faire doctrine
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Q4. A term that refers to government restrictions on the economic practices of private firms.
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A4. regulation
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Q5. An economic principle that holds that firms should fulfill as many of society’s needs as possible while using as few of its resources as possible. The greater the output (production) for a given input (for example, an hour of labor), the more efficient the process
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A5. efficiency
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Q6. Burdens that society incurs when firms fail to pay the full costs of production. An example is the pollution that results when corporations dump industrial wastes into lakes and rivers
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A6. externalities
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Q7. The rescinding of excessive government regulations for the purpose of improving economic efficiency
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A7. deregulation
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Q8. equity (in relation to economic policy)
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A8. The situation in which the outcome of an economic transaction is fair to each party. An outcome can usually be considered fair if each party enters into a transaction freely and is not unknowingly at a disadvantage
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Q9. A tool of economic management by which government attempts to maintain a stable economy through its taxing and spending policies
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A9. fiscal policy
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Q10. When the government spends more than it collects in taxes and other revenues
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A10. deficit spending
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Q11. A very severe and sustained economic downturn. They are very rare in the United States; the last one was in the 1930s
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A11. economic depression
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Q12. A moderate but sustained downturn in the economy. (Two consecutive quarters in which GDP decreases) They are part of the normal cycle of ups and downs
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A12. economic recession
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Q13. demand-side economics
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A13. A form of fiscal policy that emphasizes “demand” (consumer spending). Government can use increased spending or tax cuts to place more money in consumers’ hands and thereby increase demand
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Q14. budget deficit
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A14. The situation when the government’s expenditures exceed its tax and other revenue
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Q15. The total cumulative amount that the U.S. government owes to creditors
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A15. national debt
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Q16. Situation when the government’s tax and other revenues for the year are roughly equal to its expenditures
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A16. balanced budget
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Q17. budget surplus
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A17. Situation when the government’s tax and other revenues exceed its expenditures
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Q18. A form of fiscal policy that emphasizes “supply” (production). An example is a tax cut for business
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A18. supply-side economics
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Q19. capital-gains tax
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A19. The tax that individuals pay on money gained from the sale of a capital asset, such as property or stocks
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Q20. A general increase in the average level of prices of goods and services
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A20. inflation
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Q21. graduated personal income tax
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A21. A tax on personal income in which the tax rate increases as income increases; in other words, the tax rate is higher for higher income levels
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Q22. A tool of economic management, to available to government, based on manipulation of the amount of money in circulation; tools include the reserve requirement, discount rate, and open market operations.
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A22. monetary policy
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Q23. political agenda
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A23. Issues that people believe require governmental action
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Q24. A burden that people believe they must bear if a policy is enacted
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A24. cost
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Q25. A satisfaction that people believe they will enjoy if a policy is adopted
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Q25. benefit
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Q26. majoritarian politics
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A26. A policy in which almost everybody benefits and almost everybody pays
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Q27. interest group politics
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A27. A policy in which one small group benefits and another small group pays
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Q28. client politics
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A28. A policy in which one small group benefits and almost everybody pays
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Q29. entrepreneurial politics
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A29. A policy in which almost everybody benefits and a small group pays the cost
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Q30. policy entrepreneurs
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A30. Activists in or out of government who pull together a political majority on behalf of unorganized interests
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Q31. The market value of all final goods and services produced in the United States during a given year
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A31. gross domestic product
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Q32. The use of supply-side theory, taxes were reduced, government regulation reduced, government spending reduce (except) military, and money supply controled
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A32. Reaganomics
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Q33. A document that states tax collections, spending levels, and the allocation of spending among purposes
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A33. budget
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Q34. For the federal government, October 1 through the following September 30
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A34. fiscal year
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Q35. budget resolution
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A35. A congressional decision that states the maximum amount of money the government should spend
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Q36. sequester
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A36. Automatic spending cuts
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Q37. An economic system in which individuals and corporations, not government, own the principal means of production and seek profit
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A37. capitalism
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Q38. Negotiations between representatives of labor unions and management to determine acceptable working conditions
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A38. collective bargaining
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Q39. As measured by the Bureau of Labor Statistics (BLS), the proportion of the labor force actively seeking work but unable to fine jobs
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A39. unemployment rate
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Q40. Keynesian economic theory
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A40. The theory emphasizing that government spending and deficits can help the economy weather its normal ups and downs. Proponents of this theory advocate using the power of government to stimulate the economy when it is lagging
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Q41. poverty line
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A41. As defined by the federal government, the annual cost of a thrifty food budget for an urban family of four, multiplied by three to allow also for the cost of housing, clothes, and other expenses. Families below the poverty line are considered poor and are eligible for certain forms of public assistance
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Q42. negative government
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A42. The philosophical belief that government governs best by staying out of people’s lives, giving individuals as much freedom as possible to determine their own pursuits
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Q43. positive government
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A43. The philosophical belief that government intervention is necessary in order to enhance personal liberty and security when individuals are buffeted by economic and social forces beyond their control
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Q44. Government benefits that are given directly to individuals. These payments may be either cash transfers, such as Social Security payments and retirement payments to former government employees, or in-kind transfers, such as food stamps and low-interest loans for college education
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A44. transfer payments
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Q45. Any of a number of individual-benefit programs, such as social security, that require government to provide a designated benefit to any person who meets the legally defined criteria for eligibility
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A45. entitlement programs
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Q46. social insurance
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A46. Social welfare programs based on the “insurance” concept, requiring that individuals pay into the program in order to be eligible to receive funds from it. An example is social security for retired people, unemployment insurance, and medicare
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Q47. public assistance
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A47. A term that refers to social welfare programs funded through general tax revenues and available only to the financially needy. Eligibility for such a program is established by a means test. These programs include Temporary Assistance for Needy Families (TANF), food stamps, subsidized housing, and medicaid
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Q48. The requirement that applicants for public assistance must demonstrate that they are poor in order to be eligible for the assistance
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A48. means test
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Q49. A government benefit that is a cash equivalent, such as food stamps or rent vouchers. This form of benefit ensures that recipients will use public assistance in a specified way
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A49. in-kind benefit
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Q50. effective tax rate
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A50. The actual percentage of a person’s income that is spent to pay taxes
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Q51. The idea that all individuals should be given an equal chance to succeed on their own
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A51. equality of opportunity
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Q52. charitable choice
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A52. Name given to four federal laws passed in the late 1990s specifying the conditions under which nonprofit religious organizations could compete to administer certain social service delivery and welfare programs
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Q53 Major Social Welfare Programs
• Insurance, or “Contributory”, Programso Old Age, Survivors, and Disability Insurance (OASDI)
• Monthly payments to retired or disabled people and to surviving members of their families. This program, popularly called Social Security, is paid for by a payroll tax on employers and employees. (No means test)
o Medicare• Federal government pays for part of the cost of medical care for retired or
disabled people covered by Social Security. Paid for by payroll taxes on employees and employers. (No means test)
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Q53 Major Social Welfare Programs• Assistance, or “Noncontributory” Programs
o Unemployment Insurance (UI)• Weekly payments to workers who have been laid off and cannot find work.
Benefits and requirements determined by states. Paid for by taxes on employers. (No means test)
o Temporary Assistance for Needy Families (TANF)• Payments to needy families with children. Replaced the old AFDC program.
Partially paid for by block grants from the federal government to the states. (Means test)
o Supplemental Security Income (SSI)• Cash payments to aged, blind, or disabled people whose income is below a
certain amount. Paid for from general federal revenues. (Means test)
o Food Stamps• Vouchers given to people whose income is below a certain level, that can
be used to buy food at grocery stores. Paid for out of general federal revenues. (Means test)
o Medicaid• Pays medical expenses of persons receiving TANF or SSI payments (Means
test)
o Earned Income Tax Credit (EITC)• A provision of a 1975 law that entitles working families with children to
receive money from the government if their total income is below a certain level.
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Q54. social welfare policies
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A54. Policies that provide benefits to individuals, particularly to those in need.
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Q55. income distribution
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A55. The “shares” of the national income earned by various groups
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Q56. A tax by which the government takes a greater share of the income of the rich than of the poor. The more you make, the more you pay, as a percentage of your income. Example: income tax
o High income: 30 %o Middle income: 20%o Low income: 10%
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A56. progressive tax
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Q57. A tax by which the government takes the same share of income from everyone, rich and poor alike. Often called a flat tax.
o High income: 20 %o Middle income: 20%o Low income: 20%
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A57. proportional tax
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Q58. A tax in which the burden falls relatively more heavily upon low-income groups than upon wealthy taxpayers. The opposite of a progressive tax, in which tax rates increase as income increases. The more you make, the less you pay, as a percentage of your income. Example: sales tax
o High income: 10 %o Middle income: 20%o Low income: 30%
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A58. regressive tax
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Q59. Describes the view that the country should deliberately avoid a large role in world affairs and instead concentrate on domestic concerns
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A59. isolationist
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Q60. Describes the view that the country should involve itself deeply in world affairs
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A60. internationalist
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Q61. A doctrine, developed after World War II, based on assumptions that the Soviet Union was an aggressor nation and that only a determined United States could block Soviet territorial ambitions
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A61. containment
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Q62. The lengthy period after World War II when the United States and the Soviet Union were not engaged in actual combat (a “hot war”) but were locked in a state of deep-seated hostility
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A62. cold war
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Q63. A power structure dominated by two powers only, as in the case of the United States and the Soviet Union during the cold war
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A63. bipolar (power structure)
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Q64. A power structure dominated by a single powerful actor, as in the case of the United States after the collapse of the Soviet Union
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A64. unipolar (power structure)
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Q65. multilaterralism
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A65. The situation in which nations act together in response to problems and crises
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Q66. preemptive war doctrine
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A66. The idea, espoused by President George W. Bush, that the United States could attack a potentially threatening nation even if the threat had not yet reached a serious and immediate level
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Q67. The situation in which one nation takes action against another state (nation) or states (nations)
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A67. unilateralism
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Q68. deterrence policy
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A68. The idea that nuclear war can be discouraged if each side in a conflict has the capacity to destroy the other with nuclear weapons
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Q69. The three components (the military establishment, the industries that manufacture weapons, and the members of Congress from states and districts that depend heavily on the arms industry) that mutually benefit from a high level of defense spending
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A69. military-industrial complex
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Q70. Business firms with major operations in more than one country
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A70. multinational corporations
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Q71. economic globalization
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A71. the increased interdependence of nations’ economies. The change is the result of technological, transportation, and communication advances that have enabled firms to deploy their resources around the globe
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Q72. the view that the long-term economic interests of all countries are advanced when tariffs and other trade barriers are kept to a minimum
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A72. free-trade position
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Q73. The view that the immediate interests of domestic producers should have a higher priority (through, for example, protective tariffs) than should free trade between nations
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A73. protectionism
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Q74. worldviews
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A74. A comprehensive opinion of how the United States should respond to world problems
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Q75. disengagement (or Vietnam) view
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A75. The belief that the United States was harmed by its war in Vietnam and so should avoid supposedly similar events
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Q76. The view that we should try to improve the lives of people in other countries
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A76. doctrine of human rights
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Q77. gold plating
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A77. The tendency of Pentagon officials to ask weapons contractors to meet excessively high requirements
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Q78. environment impact statement
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A78. A report required by federal law that assesses the possible effect of a project on the environment if the project is subsidized in whole or part by federal funds
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Q79. command-and-control strategy
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A79. A strategy to improve air and water quality, involving the setting of detailed pollution standards and rules
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Q80. foreign policy
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A80. A policy that involves choice taking, like domestic policy, but additionally involves choices about relations with the rest of the world.
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Q81. Created in 1945, an organization whose members agree to renounce war and to respect certain human and economic freedoms. The seat of real power is the Security Council in which the United States is a permanent member.
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A81. United Nations (UN)
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Q82. Created in 1949, an organization whose members include the United States, Canada, most Western European nations, and Turkey, all of whom agreed to combine military forces and to treat a war against one as a war against all
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A82. North Atlantic Treaty Organization (NATO
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Q83. An alliance of the major Western European nations that coordinates monetary, trade, immigration, and labor policies, making its members one economic unit. An example of a regional organization
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A83. European Union (EU)
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Q84. A tense relationship beginning in the 1950s between the Soviet Union and the United States whereby one side’s weaponry became the other side’s goad to procure more weaponry and so on.
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A84. arms race
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Q85. A slow transformation from conflict thinking to cooperative thinking in foreign policy strategy and policymaking. It sought a relaxation of tensions between the superpowers, coupled with firm guarantees of mutual security
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A85. detente
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Q86. Mutual dependency, in which the actions of nations reverberate and affect one another’s economic lifelines
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A86. interdependency
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Q87. Often call “Star Wars” by the critics and the press. A plan for defense against the Soviet Union unveiled by President Reagan in 1983. It would crate a global umbrella in space, using computers to scan the skies and high-tech devices to destroy invading missiles
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A87. Strategic Defense Initiative
(SDI)