Budget Study Guide

Question 1

Expenditures

Answer 1

The things we spend money on in government

Question 2

Fiscal Year

Answer 2

Government keeps track for the money spent over the next year (October 1-September 30)

Question 3

16th Amendment

Answer 3

Congress has the power to tax during peacetime

Question 4

Authorization Bill

Answer 4

Opening of the purse; allots money that will go towards a program

Question 5

Appropriations Bill

Answer 5

Says how much money a program will have

Question 6

Fiscal (Tax) Policy

Answer 6

Policies that attempt to control the economy by regulating both taxing and spending patterns within government

Question 7

Social Security

Answer 7

Social program to help the elderly, disabled, or unemployed

Question 8

Medicaid

Answer 8

Healthcare for poorer families and provides hospitalization

Question 9

Welfare Reform Act 1996

Answer 9

Republican’s Contract with America; cut social programs; Clinton cut free rider program

Question 10

Office of Management and Budget

Answer 10

Cabinet department in charge of putting together budget requests from congress and the president to make one final approved budget

Question 11

House Ways and Means Committee

Answer 11

Writing tax codes with the Senate Finance Committee; STARTS IN THE HOUSE

Question 12

Means Testing

Answer 12

Those applying for a program have to prove they are actually qualified to receive the benefits

Question 13

Subsidy

Answer 13

Money given to stimulate activity in the economy; Amtrak, post office

Question 14

Federal Debt

Answer 14

Amount accumulated over time that the government owes

Question 15

Revenues

Answer 15

Income; resources the government has to make money

Question 16

Red Ink

Answer 16

Deficit spending

Question 17

Interest

Answer 17

Cost for borrowing money; money you pay for money you borrow

Question 18

Balanced Budget Amendment

Answer 18

Require congress to create a balanced federal budget, but was never passed

Question 19

Gramm-Rudman-Hollings Bill

Answer 19

Attempt to balance the budget by putting a limit on deficit spending (cut discretionary spending if didn’t adhere)

Question 20

Loophole

Answer 20

Allows people to get out of paying taxes

Question 21

Medicare

Answer 21

Covers hospital and other medical needs for those over 65

Question 22

Entitlements/Uncontrollables

Answer 22

Expenditures that if qualified for program you will receive the benefits by law

Question 23

Congressional Budget Office

Answer 23

Congressional agency that determines the feasibility of the budget; informs congress about the current economic state

Question 24

Deficit Spending

Answer 24

Government spends more money than they actually have, putting us into further debt

Question 25

Senate Finance Committee

Answer 25

Agree on a tax code with the House Ways and Means Committee

Question 26

Budget Surplus

Answer 26

Government has more money than it is spending

Question 27

Budget Deficit

Answer 27

Amount of money you spend past your budget each fiscal year