Deck 6: Budgeting and the Public Finances

Question 1

The Line-Item Veto Act of 1996 gave the President the power to cancel three types of budgetary provisions after they had been enacted into law. In Clinton v. City of New York (1998) the Supreme Court found the Line-Item Veto Act unconstitutional. Analyze what the likely impact this veto power would have had on (a) congressional politics, (b) government spending, and (c) electoral politics.

Answer 1

Not Answered

Question 2

Describe three budgetary "gimmicks" and potential structural solutions to them.

Answer 2

Not Answered

Question 3

Consider in depth the utility of benefit/cost analysis in the example presented in the chapter concerning HEW's death averting programs. What additional information would you want before making decisions on which programs to fund with the limited resources available?

Answer 3

Not Answered

Question 4

John Maynard Keynes introduced the concept of countercyclical fiscal policy which, in theory, would act as a great stabilizing tool in our economy. Over the years, there have been pushes for a balanced budget amendment to the Constitution, which would effectively preclude the use of Keynesian economics. Do you favor a balanced budget amendment? Why or why not? In your opinion, has incrementalism effectively precluded the use of Keynesian economics, or do we still have a need for the Keynesian approach?

Question 5

What is the distinction between authority and appropriations? List and explain three types of budget authority.

Question 6

The total government spending (the combined spending of all governments in the United States) accounts for about what percent of the GDP?

A) 9%
B) 25%
C)32%
D)38%

Question 7

Which of the following constitutes the largest source of federal revenues?

A) individual income taxes
B) corporate income taxes
C)government borrowing
D)excise taxes

Question 8

Sunset provisions

A) eliminate the need for performance budgeting
B) eliminate the need for program budgeting
C)require a line item veto
D)none of the above

Question 9

The Keynesian approach to fiscal policy seeks to use the federal budget to

A) protect incumbents in Congress against the whims of the electorate
B) develop new industries
C)balance the budget on an annual cycle
D)limit the rate of economic growth or contraction

Question 10

Overall, local governments generate most of their revenues through

A) sales and gross receipts taxes
B) corporation income taxes
C)the direct sale of products and services
D)property taxes

Question 11

John Maynard Keynes is best known for

A) developing PPBS
B) developing ZBB
C)developing performance budgeting
D)his theory of fiscal policy

Question 12

Federal fiscal year 2000 began on

A) September 30, 1999
B) October 1, 1999
C)September 30, 2000
D)October 1, 2000

Question 13

Which of the following are generally considered to be uncontrollable government expenditures?

A) entitlements
B) interest on debt
C)spending required under contractual obligations
D)all of the above

Question 14

Which of the following is not an impoundment?

A) a rescission
B) a deferral
C)budgetary reprogramming
D)all are impoundments

Question 15

Which of the following is not a type of budget authority?

A) borrowing authority
B) judicial authority
C)contract authority
D)entitlement authority

Question 16

Zero-base budgeting

A) is incremental
B) was applied by President John F. Kennedy
C)was developed by Allen Schick
D)was developed by Peter Pyhrr

Question 17

Incremental budgeting tends to

A) increase political conflict
B) eliminate agency overlaps
C)reduce political conflict
D)strictly limit government spending

Question 18

From start to finish, the process of establishing and executing a federal budget for one year takes about

A) 12 months
B) 18 months
C)30 months
D)40 months

Question 19

What action is used when the executive branch and Congress fail to enact a budget by the beginning of a fiscal year?

A) off-budget spending
B) backdoor spending
C)continuing resolution
D)none of the above

Question 20

What portion of the 2007 federal budget is estimated to pay interest on debt?

A) 3%
B) 8%
C)15%
D)30%

Question 21

A legislative action canceling budget authority previously provided by Congress is called a

A) sequestration
B) rescission
C)impoundment
D)reconciliation

Question 22

The Budget Enforcement Act of 1990

A) supersedes Gramm-Rudman-Hollings
B) changes procedures for the budgetary process
C)requires deadlines for budget enactment
D)all of the above

Question 23

The largest proportion of combined state and local spending goes for

A) defense
B) health
C)roads
D)education

Question 24

Sequestration is associated with

A) supply-side economics
B) PPBS
C)ZBB
D)the Budget Enforcement Act

Question 25

During budget execution, for what action that moves funds from one program to another must an agency obtain congressional committee approval?

A) transferring
B) reprogramming
C)hiring freeze
D)impoundment

Question 26

In 2007, the greatest proportion of federal government spending went toward

A) security
B) Social Security
C)Medicare
D)interest on the national debt

Question 27

Proposition 13 in California and Proposition 2½ in Massachusetts are examples of

A) progressive taxes
B) revenue sharing
C)tax revolts
D)grants to local governments

Question 28

The Government Performance and Results Act (GPRA), passed by Congress in 1993, most closely seeks to

A) enhance accountability by strengthening the offices of the Inspector General (IG) in each federal agency
B) require various federal government programs to establish five-year strategic plans that include performance goals
C)encourage the EOP to establish performance goals for various federal agencies
D)give individual government employees financial incentives to expose waste and fraud in the federal government

Question 29

The federal judiciary has gained the power to

A) raise federal taxes
B) allocate federal and state resources
C)create statutory entitlements
D)none of the above

Question 30

When considering raising governmental revenues which of the following general concerns needs to be considered

A) equity and political feasibility
B) administrative capability
C)economic effects
D)all of the above

Question 31

Only Congress may appropriate money from the treasury.

Question 32

The chief advantage of ZBB over PPBS is that it gives interest groups greater access to budget making.

Question 33

The difference between budget receipts and outlays is called a surplus or deficit.

Question 34

The Appropriations Committees in the House and Senate are responsible for establishing the budget's maximum spending authority.

Question 35

The Council of Economic Advisers is the President's main agency for budgeting.

Question 36

PPBS cannot work well in the absence of operational policy goals.

Question 37

The New Public Management favors financing agencies through user fees.

Question 38

The Office of Management and Budget was incorporated into the Executive Office of the President in 1939.

Question 39

The chief benefit of incremental budgeting is that programs cannot be continued unless they have clear goals.

Question 40

The balanced budget amendment was passed in 1994.

Question 41

The Budget Control and Impoundment Act of 1974 established the Congressional Budget Office.

Question 42

The judiciary considers limited resources to be a legitimate excuse for failing to protect someone's constitutional rights.

Question 43

A key feature of the Budget Enforcement Act of 1990 was the enactment of the so-called Pay-As-You-Go (PAYGO) rules.

Question 44

14. The Employment Act of 1946 embraced the concept of counter cyclical fiscal policy.

Question 45

State legislatures tend to play a smaller role than Congress in budgeting.