Question 1

In medieval England, the concept of a budget refered to:

Accepted Answer

In medieval England, the concept of a budget referred to the purse of the Chancellor of the Exchequer. The Chancellor was responsible for managing the government's finances, and the budget referred to the amount of money that was available to spend on various expenses. This was typically kept in a purse or bag that was physically transported to the location where the expenses were being incurred.

Question 2

Against what system of political economy did the American colonists revolt?

Accepted Answer

The American colonists revolted against the mercantilism of Mother England, which involved strict government regulation of trade and the colonies' economic activities. They believed that this system put them at a disadvantage and limited their economic opportunities.

Question 3

In a capitalist system of political economy:

Accepted Answer

A

Question 4

John Maynard Keynes' approach to government economics holds that:

Accepted Answer

John Maynard Keynes believed that during times of economic crisis, government intervention in the economy through increased spending and public works programs could stimulate demand and lead to economic recovery. This approach is often referred to as "Keynesian economics" and was put into practice in many countries during the Great Depression and World War II. While Keynes did not advocate for a permanent increase in government intervention, he believed that it was necessary in times of crisis to prevent long-term economic stagnation. Therefore, the correct answer is B, as Keynes argued for increased government intervention specifically during war-time.

Question 5

Taxes that may be levied to collect government revenues may include:

Accepted Answer

All three options mentioned (individual income taxes, corporate income taxes, and sales taxes) are common taxes levied by governments to collect revenue. Therefore, the best choice is D - all of the above.

Question 6

A proposal for government action, defined in financial terms, giving a statement of revenues and expenditures, is called the:

Accepted Answer

A proposal for government action, defined in financial terms, giving a statement of revenues and expenditures is called the budget. The public debt refers to the total amount of money owed by a government. Capital budget refers to the portion of the budget that outlines investments in long-term assets like infrastructure. Keynesian document refers to economic policies based on the ideas of economist John Maynard Keynes, and is not specifically related to government budgets.

Question 7

The budget cycle in financial budgeting includes the steps of:

Accepted Answer

The budget cycle in financial budgeting typically includes several key phases, but the options provided in the question do not accurately represent these phases. Here is a more accurate breakdown of the steps involved in a typical budget cycle:
a) Agency preparation: This step involves the preparation of budget requests by various government agencies or departments. During this phase, agencies review their financial needs, goals, and priorities for the upcoming fiscal year and prepare detailed budget proposals outlining their funding requirements.
b) Executive preparation: After agencies submit their budget requests, the executive branch of the government, typically led by the President or Governor (depending on the level of government), reviews these requests. The executive branch, often with the help of the Office of Management and Budget (OMB) or a similar body, consolidates these requests into a comprehensive executive budget proposal. This step is sometimes referred to as executive budget preparation, not "executive purchasing."
c) Legislative consideration: The executive budget proposal is then submitted to the legislative branch, where it is reviewed, debated, and modified as necessary. This process involves various legislative committees and subcommittees, which hold hearings and make recommendations on different parts of the budget. The legislature may make changes to the proposed budget before passing it. This step is often referred to as legislative action or approval, not "legislative automation."
d) Execution and implementation: Once the budget is approved by the legislature and signed into law by the executive, the approved budget is executed. Agencies implement their programs and activities according to the allocated funds, and the treasury disburses funds as appropriated.
e) Audit and evaluation: Throughout and after the budget year, the budget is subject to audit and evaluation to ensure funds are being used as intended and to assess the effectiveness of funded programs. This step helps inform future budget decisions.
Therefore, the correct answer to the question, based on the typical steps of the budget cycle, would be:
a) Agency preparation
The other options provided (executive purchasing and legislative automation) are not standard terms associated with the budget cycle.

Question 8

What public financial management approach was designed for agency heads to establish program and funding objectives and then require a process toward accomplishing those objectives?

Accepted Answer

Management by objectives is a public financial management approach that was designed for agency heads to establish program and funding objectives and then require a process toward accomplishing those objectives.

Question 9

Can the USA President veto a Congressional Budget Resolution?

Accepted Answer

The answer of Can the USA President veto a Congressional...

Question 10

Zero-Based Budgeting (ZBB) was first used in government by:

Accepted Answer

Zero-Based Budgeting (ZBB) was first used in government by Governor Jimmy Carter of Georgia before he became President. He implemented it to review spending from a base of zero, requiring departments to justify all of their budget requests.

Question 11

Federal agencies overseeing the budget process have included:

Accepted Answer

The Bureau of the Budget (BOB) was established in 1921 and was later replaced by the Office of Management and Budget (OMB) in 1970. Both of these agencies oversee the budget process for the executive branch of government. The Congressional Budget Office (CBO) was established in 1974 to provide Congress with nonpartisan analysis of economic and budgetary issues. Therefore, all three agencies are involved in overseeing the budget process, making D the best choice.

Question 12

Budgeting perspectives treating last year's appropriation as a base:

Accepted Answer

Incrementalism is a budgeting perspective that treats last year's appropriation as a base and assumes that most of the funding will remain the same for the next year, with only incremental changes being made based on new priorities or changes in circumstances.

Question 13

The process of government budgeting involves agency preparation, executive formulation, legislative actions, execution & control, and review and audit. This statement is:

Accepted Answer

The answer of The process of government budgeting involves agency...

Question 14

An approach to budgeting infamously used by the U.S. Department of Defense during the Vietnam War and called "PPBS":

Accepted Answer

PPBS stands for Planning, Programming, and Budgeting System, which is an approach to budgeting that emphasizes planning and identifying programs' objectives and resources before allocating funds. This approach was used by the U.S. Department of Defense during the Vietnam War to ensure that programs were aligned with national objectives and allocated resources efficiently. It is a form of program budgeting that focuses on achieving specific goals and objectives, rather than simply maintaining existing programs or activities.

Question 15

An approach to budgeting that emphasizes efficiency and uses a separate entry for each subject category of spending is:

Accepted Answer

Line-item budgeting emphasizes efficiency by breaking down spending into individual categories or line items. Each expense is listed separately, allowing for better tracking and control over spending.

Question 16

The traditional perspective on the nature of corruption that focuses on individual rotten-apples:

Accepted Answer

The traditional perspective on the nature of corruption that focuses on individual rotten-apples is known as the personalistic perspective. The other perspectives focus on the role of institutions and systemic factors in perpetuating or combating corruption.

Question 17

Anti-corruption reforms in public financial management may include:

Accepted Answer

All of the options listed are correct anti-corruption reforms in public financial management. Conflict of interest reporting helps to identify and prevent potential corruption. RICO statutes allow for the seizure of assets and property gained through corrupt activities. Transparency, public participation, and oversight can help to prevent corruption by increasing accountability and making it more difficult to engage in corrupt activities without being caught.

Quiz 8: Public Financial Management Corruption