Deck 8: The Public Trough: Financing and Budgeting Governments

Question 1

The _________________________ is composed of those revenues that government can spend for any purpose.

A) special fund
B) general fund
C) insurance trust
D) entitlement trust

Answer 1

B

Question 2

An income tax that taxes all incomes at the same rate is referred to as a

A) proportional income tax
B) progressive income tax
C) regressive income tax
D) minimal income tax

Answer 2

A

Question 3

Insurance contributions are a euphemism for

A) sales taxes
B) property taxes
C) compulsory payroll taxes
D) income taxes

Answer 3

C

Question 4

When annual government spending exceeds the government's annual income, the difference is called a

A) debt
B) deficit
C) depression
D) division

Question 5

The Omnibus Budget Reconciliation Act of 1993

A) raised taxes and cut programs
B) cut taxes and cut programs
C) raised taxes and increased program spending
D) created a federal sales tax

Question 6

A budget is

A) the funding results of an organization
B) past economic guidelines
C) centrality of funding systems
D) a series of goals with price tags attached

Question 7

A line-item budget involves

A) the allocation of resources according to the degree to which organizational goals and objectives are met
B) the allocation of resources according to the cost of each item
C) the allocation of resources based upon operation and performance
D) the allocation of resources based upon the periodic re-evaluation of all programs for which the agency is responsible

Question 8

Program/Performance Budgeting is a system of resource allocation that

A) establishes long-range planning goals and contains a cost-benefit analysis of existing and proposed programs
B) focuses on the cost of each item
C) focuses on the degree to which organizational goals and objectives are
Met
D) organizes the budget document by operation and performance, and links these to performance levels

Question 9

Planning-Programming-Budgeting (PPB)

A) focuses on the cost of each item
B) organizes the budget document by operation and performance
C) establishes long-range planning goals and contains a cost-benefit analysis of existing and proposed programs
D) focuses on the degree to which organizational goals and objectives are met

Question 10

Budgeting-By-Objectives allocates resources

A) according to the cost of each item
B) based upon operation and performance
C) based upon spending limits set by the elective chief executive
D) according to the degree to which organizational goals and objectives are met

Question 11

Zero-base budgeting is the allocation of resources

A) based upon the periodic re-evaluation of all programs for which the agency is responsible
B) according to the cost of each item
C) according to the degree to which organizational goals and objectives are met
D) based upon long-range planning goals and a cost-benefit analysis

Question 12

Zero-base budgeting stresses which of the following?

A) economic planning options
B) evaluating stocks and bonds
C) ranking program priorities
D) decentralizing government services

Question 13

Target Base Budgeting is a method of allocating resources to agencies

A) that is based upon the cost of each item
B) when spending limits have been set by the elected chief executive
C) that links the disbursement of funds to performance measures
D) that establishes long-range planning goals and contains a cost-benefit analysis of existing and prop0sed programs

Question 14

Which of the following is not a method of cutback management?

A) raising taxes
B) hiring freezes
C) across the board budget cuts
D) reorganizing government

Question 15

Performance-Based Budgeting is a system of resource allocation that

A) establishes long-range planning goals and contains a cost-benefit analysis of existing and proposed programs
B) focuses on the degree to which organizational goals and objectives are met
C) links the performance levels of programs with specific budget amounts
D) organizes the budget document by operation and performance, and links these to performance levels

Question 16

Special funds generally rely on user fees to pay for themselves.

Question 17

The sales tax is a progressive tax.

Question 18

Federal economic policy is based on the Keynesian idea that economic health can be improved through government action.

Question 19

A line-item budget only addresses outputs.

Question 20

Zero-base budgeting is useful for comparing programs for the purpose of increasing or decreasing spending.

Question 21

All tax systems share five features that determine their tolerability to taxpayers. What are these features? In what ways does the federal tax structure violate these principles?

Question 22

Define fiscal policy. Discuss governmental revenue sources and explain which revenue source, in your opinion, is the most efficient and effective means of government funding.

Question 23

What are some of the more significant legislative acts that have changed the congressional budget making process? What makes these acts important to the current status of the federal budget?

Question 24

What sorts of strategies and tactics are required to be an effective budgetary politician?

Question 25

What are some of the features that all public budgeting concepts share?

Question 26

Explain the differences and similarities between Program-Performance Budgeting and Performance-Based Budgeting.