George W Bush's Highest Domestic Policy Priority in His First Year

question 11

Multiple Choice

George W. Bush's highest domestic policy priority in his first year in office was

• A) campaign finance reform.
• B) achieving a balanced budget.
• C) ending affirmative action.
• D) cutting taxes.
• E) reducing the barriers between church and state.

---

Definitions:

Laffer Effect

Refers to the economic theory proposing that there is an optimal tax rate that maximizes government revenue without hindering economic growth.

Labor Supply Curve

A graphical representation of the relationship between the quantity of labor supplied and the wage rate in an economy.

Elasticity of Demand

A measure of how much the quantity demanded of a good responds to a change in the price of that good, calculated as the percentage change in quantity demanded divided by the percentage change in price.

Logarithmic Scales

Logarithmic scales are a way of displaying data on graphs where the scale is divided according to orders of magnitude, so each step on the scale represents a tenfold change in the data.