Question 1

The first actions for budgetary reform were taken at what level of government?

Accepted Answer

A

Question 2

Which of the following has NOT occurred as a result of the Congressional Budget Act of 1974?

Accepted Answer

The Congressional Budget Act of 1974 actually aimed to reduce Congress's dependence on the Executive Branch's Office of Management and Budget (OMB) by creating its own budgetary bodies, such as the Congressional Budget Office (CBO), to provide independent financial data and advice.

Question 3

Tax breaks have grown to the point that if we were to eliminate all of those currently in existence we also could all but eliminate annual budget deficits.

Accepted Answer

Tax breaks and deductions result in a loss of government revenue, which contributes to budget deficits. Eliminating them would increase revenue and help reduce deficits.

Question 4

During which step of the budgetary cycle is power given to incur financial obligations?

Accepted Answer

Appropriations are the step in the budgetary cycle where power is given to incur financial obligations. This step involves the allocation of funds for specific purposes by a governing body, such as a legislature, allowing agencies or departments to spend money up to the appropriated amount.

Question 5

Which of the following established a mandatory deadline for a balanced budget?

Accepted Answer

The Gramm-Rudman-Hollings Act, also known as the Balanced Budget and Emergency Deficit Control Act of 1985, established a mandatory deadline for a balanced budget. The act required that the budget be balanced by 1991, and if it was not, automatic spending cuts known as sequestration would go into effect. The act was amended several times but was repealed in 1990.

Question 6

An agency directly involved in administering monetary policy is the

Accepted Answer

The Federal Reserve Board is responsible for administering monetary policy in the United States. The General Accounting Office is responsible for overseeing government spending and auditing federal agencies, while the Office of Management and Budget is responsible for managing the federal budget and supervising regulatory policies.

Question 7

Which budgetary approach requires the budget agency to adopt a policy role, is characterized by a systematic policy-making style, and has a scope that includes inputs, outputs, effects, and alternatives?

Accepted Answer

Planning-programming budgeting (PPB) requires the budget agency to adopt a policy role, has a systematic policy-making style, and has a comprehensive scope that includes inputs, outputs, effects, and alternatives. It involves planning and evaluating programs and projects based on their objectives and expected outcomes, rather than just their costs and historical funding levels.

Question 8

The Commission on Economy and Efficiency was established in an attempt to reduce the number of federal agencies created during World War II by former President Herbert Hoover in 1947.

Accepted Answer

The Commission on Economy and Efficiency was actually established by President William Howard Taft in 1910, not during or after World War II by Herbert Hoover. Its purpose was to make the administrative functions of the federal government more efficient, rather than specifically to reduce the number of federal agencies created during World War II.

Question 9

"Ripple effects" are most important in connection with government decisions regarding debt management.

Accepted Answer

Ripple effects are important in various contexts beyond government debt management, including economics, social policy, environmental decisions, and more, as they describe how an action in one area can lead to consequences in others.

Question 10

The legislature is not directly involved in which step of the budgetary cycle?

Accepted Answer

The answer of The legislature is not directly involved in...

Question 11

Total debt in the United States dramatically increased during the Bush Administration (2001-2009), while the size of the federal government

Accepted Answer

The size of the federal government increased during the Bush Administration, as evidenced by the creation of new government programs such as the Department of Homeland Security and the expansion of existing programs such as Medicare Part D. This expansion likely contributed to the increase in total debt during this time period.

Question 12

According to some economists, the "Great Recession" ended in

Accepted Answer

June 2009 is widely recognized as the end of the "Great Recession" based on the National Bureau of Economic Research's (NBER) business cycle dating committee's announcement in September 2010. The NBER considers a number of factors, including employment, income, and production, when determining the beginning and end dates of recessions. While the U.S. economy still experienced some challenges in the years following June 2009, such as slow job growth and a shaky housing market, it was considered to be out of the recessionary period.

Question 13

After both the Civil War and World War II, national government expenditures declined from their wartime peaks but remained significantly higher than prewar levels.

Accepted Answer

This is true. Both after the Civil War and World War II, national government expenditures decreased from their wartime highs but continued to be considerably higher than prewar levels.

Question 14

The creation of the Executive Office of the President coincided with the rise of performance budgeting.

Accepted Answer

The creation of the Executive Office of the President in 1939 coincided with the rise of performance budgeting, which aimed to link funding to program results and outcomes. The Executive Office played a key role in developing and promoting this approach to budgeting.

Question 15

Which of the following was NOT true regarding the period 1866-1900?

Accepted Answer

The executive budget was not created during the period of 1866-1900. The creation of the executive budget was a reform implemented by President Warren G. Harding in 1921.

Question 16

Budgets can be used as guidelines for counting and recording income and expenditures; many fiscal and other public-policy functions can also be served through budgeting, including

Accepted Answer

Budgets can serve many functions, including keeping a ledger of financial transactions, revealing information about government spending, outlining statements of financial intent, and providing estimates of anticipated income and expenditures. Therefore, all of the above options are correct.

Question 17

Which type of committee is responsible for overseeing annual budgets in their entirety?

Accepted Answer

Budget committees are responsible for overseeing annual budgets in their entirety. Appropriations committees are responsible for deciding how much money is actually allocated to different government programs, while oversight committees monitor the implementation and effectiveness of laws and programs. Tax-legislation committees are focused specifically on tax laws and policies.

Question 18

Which is not a fiscal policy tool?

Accepted Answer

Regulating the money supply is a monetary policy tool, not a fiscal policy tool. Fiscal policy tools involve government spending, taxation, and related policies that impact the economy through changes in government revenue and spending.

Question 19

Less than half of all national government expenditures during the 1980s were classified as "uncontrollable."

Accepted Answer

According to the concept of "uncontrollable" expenditures, expenses such as interest payments on debt, entitlement programs, and defense spending are beyond the control of policymakers. During the 1980s, these types of expenditures accounted for more than half of all national government expenditures, making the statement false.

Question 20

Throughout most of U.S.history, budgeting has been incremental.

Accepted Answer

Incremental budgeting involves making slight modifications to the previous year's budget, rather than starting from scratch. This has been the dominant approach to budgeting in the United States, particularly at the federal level.

Quiz 8: Government Budgeting