QuestionQuestion 1.1. (TCO 7) Describe how today’s conservatives use the term “political economy.” (Points : 3)Conservatives use the term to try to get back to the pure market system advocated by Adam Smith.Conservatives understand the term within the context of Machiavelli’s The Prince.Conservatives veer toward John Stuart Mill’s usage, which advocated utilitarianism.Conservatives take a neo-utilitarian approach, hoping to benefit the weakest members of society.Question 2.2. (TCO 7) Describe British economist John Maynard Keynes’ proposal to cure economic depressions. (Points : 3)Keynes suggested infusing the economy with government funds to promote spending.Keynes advocated for “trickle-down” economic policies.Keynes argued for stronger stimulus packages to corporations and small businesses.Keynes proposed to cure depressions by dampening the swings of the business cycle.Question 3.3. (TCO 7) President Jimmy Carter attempted to stimulate the economy, but this made inflation worse. This led him to _____. (Points : 3)lose the 1980 electionslash prices of corn and soybeanssubsidize major oil companiesincrease the national deficitQuestion 4.4. (TCO 7) Conservatives hold that Johnson’s Great Society was a waste of money, locking recipients into _____ and encouraging a subculture of drugs and crime. (Points : 3)entitlement benefitsperpetual subsidiessocial safety netswelfare dependencyQuestion 5.5. (TCO 7) Which U.S. President is responsible for implementing the Food Stamp program nationwide? (Points : 3)John F. KennedyLyndon B. JohnsonRichard NixonJimmy CarterQuestion 6.6. (TCO 7) Differentiate between the rising costs of Medicare and Medicaid. (Points : 3)Medicare anticipates rising costs due to changing proportions of people over 65.Medicaid expects rising costs due to looming financial busts.Medicare plans to keep spending down by raising the eligibility age to 69.Medicaid hopes to beat rising costs by adjusting the poverty level.Question 7.7. (TCO 7) Why are many politicians wary about limiting Social Security and Medicare expenses? (Points : 3)Many would be left without enough to support them.Caps to these programs would undermine the welfare state.It can cost them votes.Both are primary social safety nets.Question 8.8. (TCO 7) Compare American and Canadian views on the size of government. (Points : 3)Americans believe the government is too small, and Canadians feel that government intrudes on individual privacy.America and Canada are similar nations located in North America, and both Americans and Canadians feel that government is too large.Americans and Canadians generally agree that government should be larger, funding welfare programs such as Medicaid and Food Stamps.Many Americans believe government is too large, and Canadians recognize that government has a pivotal role to play and accept higher taxes.Question 9.9. (TCO 7) What was the poverty line in 2012? (Points : 3)$14,505$17,060$23,050$26,750Question 10.10. (TCO 7) Many conservative economists argue that some banks are _____, because they would topple the rest of the economy with them. (Points : 3)inherently successfultoo big to faildestined for profitpractically invincible