Question 1

Budgeting establishes priorities and plans to accomplish priorities.

Accepted Answer

Budgeting involves making decisions about how to allocate limited resources based on priorities and goals. By setting priorities and creating a plan to achieve them, budgeting helps individuals and organizations use their resources effectively and achieve their objectives.

Question 2

It is estimated that by 2010, the U.S. national debt will be&#10;A) around $3 trillion.&#10;B) around $5 trillion.&#10;C) around $7 trillion.&#10;D) around $11 trillion.

Accepted Answer

According to historical data and projections from the Congressional Budget Office, the U.S. national debt is expected to reach around $11 trillion by 2010. Therefore, the best choice is D.

Question 3

According to Wagner's Law,&#10;A) budget cuts must be made &#34;across the board.&#34;&#10;B) entitlement programs should be funded before all other items.&#10;C) government budget size parallels the growth of the private sector.&#10;D) Lockean liberalism would have prevented deficit spending.

Accepted Answer

Wagner's Law states that government budget size will increase as the economy grows and the private sector expands. This is because there is an increased demand for government services as the population and economy grow, and as society becomes more complex. Therefore, the government budget size is not necessarily tied to budget cuts or entitlement programs, but rather to the growth of the private sector. Option D is incorrect as Lockean liberalism is a political philosophy that focuses on the protection of individual rights and limited government, rather than deficit spending.

Question 4

The Ways and Means Committee&#10;A) is a committee in the House of Representatives managing revenue issues.&#10;B) is a committee in the Senate managing spending issues.&#10;C) is a committee made up of the president, secretary of treasury, and OMD director.&#10;D) is a committee that oversees the executive budget process.

Accepted Answer

The Ways and Means Committee is a committee in the House of Representatives that manages revenue issues such as taxation, tariffs, and social security funding. It is one of the most powerful committees in the House and has jurisdiction over all revenue-related legislation.

Question 5

Why doesn't the U.S. Treasury give agencies their entire appropriation in one sum?&#10;A) Because Congress is in charge of dispersal&#10;B) Treasury doesn't have that much money&#10;C) For reasons of accountability&#10;D) Both b and c

Accepted Answer

For reasons of accountability and because Treasury doesn't have that much money.

Question 6

An &#34;earmark&#34; is more commonly referred to as&#10;A) pork-barrel spending.&#10;B) trust-fund money.&#10;C) line-item budgeting.&#10;D) legislative authorization.

Accepted Answer

"Earmark" is commonly used as a synonym for "pork-barrel spending," which refers to funds allocated by government officials for specific projects or programs benefiting their constituents or special interest groups.

Question 7

In national budgeting, the largest revenue stream is&#10;A) corporate income tax.&#10;B) fuel tax.&#10;C) personal income tax.&#10;D) death tax.

Accepted Answer

Personal income tax is the largest revenue stream for national budgeting in most countries. Corporate income tax and fuel tax also contribute significantly, but personal income tax generates the most revenue. The death tax, also known as the estate tax, is a relatively small revenue source and is only applicable to a small portion of the population.

Question 8

Modern liberals tend to favor flat taxes while classical liberals tend to favor graduated tax rates.

Accepted Answer

Modern liberals tend to favor progressive tax rates that increase as income levels increase, while classical liberals tend to favor flat taxes or lower tax rates in general.

Question 9

The Seventeenth Amendment to the Constitution authorized Congress to levy&#10;A) energy taxes.&#10;B) personal income taxes.&#10;C) excessive wealth taxes.&#10;D) tariffs on imported goods.

Accepted Answer

The Seventeenth Amendment, ratified in 1913, allows for the direct election of U.S. Senators by the people of each state. It has no direct connection to any specific tax type or policy, so options A, C, and D can be ruled out.

Question 10

In studying the charts in your textbook, generally speaking, the national debt as a proportion of GNP&#10;A) has risen steadily over the last thirty years.&#10;B) remains unchanged since the Truman administration.&#10;C) rises during Republican presidencies and falls during Democratic administrations.&#10;D) None of the above

Accepted Answer

The answer of In studying the charts in your textbook,...

Deck 17: Cost of Policy