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Public Policy: Domestic and Economic — High School Government practice questions

20 multiple-choice questions and 9 flashcards on Public Policy: Domestic and Economic, about 8% of the High School Government bank. Every one carries a written rationale.

Written and maintained by the CoStudy team · last updated 2026-10-02 · how we write and review questions

What this chapter covers

Public Policy: Domestic and Economic is one of 12 chapters in CoStudy's High School Government bank, and it holds 20 of the bank's 240 multiple-choice questions — roughly 8% of the total. That proportion is not arbitrary: chapters follow the certifying body's published exam outline, and the number of questions in each is set by that domain's published weight, so the share of your practice time this chapter takes matches the share of the real exam it accounts for.

Studying by chapter is worth doing once you have a diagnostic score. A single overall percentage tells you whether you are close; it does not tell you which domain is dragging. Working a weak chapter in isolation, and re-testing it in isolation, is the fastest way to move a score that has stalled — and it is why the mock exams in CoStudy report by domain rather than as one number.

Free Public Policy: Domestic and Economic practice questions

5 questions drawn from this chapter, with the full rationale shown — the controlling principle behind the right answer, and why each wrong option tempts and fails.

The U.S. federal income tax is progressive, meaning:

  1. everyone pays the same rate
  2. lower incomes pay higher rates
  3. only businesses pay it
  4. higher incomes face higher tax rates

Answer: D — higher incomes face higher tax rates

D) Correct — Rates rise across income brackets. A) Is a flat tax. B) Is regressive. C) Individuals pay it too.

Social Security is funded mainly by:

  1. payroll taxes
  2. sales taxes
  3. tariffs
  4. property taxes

Answer: A — payroll taxes

A) Correct — Workers and employers each pay a share. B) Are mostly state taxes. C) Are a small revenue source. D) Fund local governments.

The first step in the public policy process is usually:

  1. implementation
  2. evaluation
  3. adoption
  4. agenda setting

Answer: D — agenda setting

D) Correct — An issue must get attention before action. A) Comes after a policy is adopted. B) Comes last. C) Comes after formulation.

Most funding and control of K–12 public schools comes from:

  1. the federal government
  2. private companies
  3. the Supreme Court
  4. state and local governments

Answer: D — state and local governments

D) Correct — The federal government provides a smaller share. A) Provides roughly a tenth of funding. B) Public schools are publicly funded. C) Courts do not fund schools.

Fiscal policy is set by ___, while monetary policy is set by ___.

  1. elected officials; the Federal Reserve
  2. the Federal Reserve; Congress
  3. the Supreme Court; the Treasury
  4. state legislatures; the President

Answer: A — elected officials; the Federal Reserve

A) Correct — Congress and the President set fiscal policy, which uses taxes and spending. B) Reverses the two. C) Neither sets these policies. D) Is not the division.

Public Policy: Domestic and Economic flashcards

4 cards from the 9 in this chapter.

What is discretionary spending?

Federal spending set annually through the appropriations process (e.g., defense, education, transportation).

What is the difference between deficit and debt?

Deficit: annual shortfall when spending exceeds revenue. Debt: total cumulative amount the government owes.

What is fiscal policy?

Government's use of taxation and spending to influence the economy. Decided by Congress and the president.

What is monetary policy?

Central bank (Federal Reserve) control of money supply and interest rates to manage inflation and employment.

Practise the full chapter

These are a sample. The full Public Policy: Domestic and Economic chapter runs 29 items with per-chapter progress tracking, on the web and in the iOS app.

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