Budgeting Class

Question 1

In the public sector, the term is often exclusively associated with infrastructure investments – plant and equipment. Cover most new Construction projects.

Answer 1

Capital budgeting

Question 2

An _____ _____ is used to keep track of maintenance operations, salaries, and interest payments

Answer 2

Operating budget

Question 3

In the United States, businesses along with state and local governments divide their budgets into two types

Answer 3

The operating budget and capital budget. The operating budget

Question 4

Programs covered by specific revenue sources

Answer 4

Special fund budgets

Question 5

Uncontrollable expenditures are the result of government policies that have made some groups what?

Answer 5

Uncontrollable expenditures are the result of government policies that have made some groups automatically eligible for benefits.

Question 6

What are 3 examples of entitlement programs that use large portions of the federal budget?

Answer 6

Social Security, Medicare and Medicaid . Other uncontrollable expenditures include civilian and military pensions, earned income credits and food stamp programs

Question 7

Discretionary spending includes items that are not what?

Answer 7

Part of the mandatory budget

Question 8

In public finance, discretionary spending is government spending implemented through a what?

Answer 8

An appropriations bill

Question 9

Budgeting Systems- a set of units with relationships amongst them. What are two system examples of budgeting systems?

Answer 9

Capital and operations

Question 10

_____ in economics is the “quantity of goods or services produced in a given time period, by a firm, industry, or country.

Answer 10

Output

Question 11

It is ___ _____ that makes a country rich, not large amounts of money.

Answer 11

National output

Question 12

When the government redistributes or transfers resources to components of society instead of consuming them

Answer 12

Non-exhaustive expenditures

Question 13

Give an example of Non-exhaustive expenditures.

Answer 13

Interest payments on national debt, unemployment insurance, retirement benefits

Question 14

Occurs when the Government consumes resources such as facilities and manpower that might have been otherwise used by the private sector

Answer 14

Exhaustive expenditures

Question 15

Give some examples of Exhaustive expenditures?

Answer 15

Building bridges, buying tanks and missiles, and hiring troops and teachers

Question 16

GDP

Answer 16

Total economic production. Country’s final output. Ex. Cars, wheat

Question 17

GNP

Answer 17

• Revenue that is generated outside the U.S.A.

Question 18

N.N.P. Net national Product

Answer 18

Net national Product (N.I.) National income derived from NNP by eliminating indirect business taxes included in the price of goods and business transfer payments

Question 19

CITY government budget year.

Answer 19

CITY July 1st to June 30

Question 20

STATE government budget year.

Answer 20

STATE April 1st to March 31

Question 21

FEDERAL government budget year

Answer 21

FEDERAL October 1s to September 30

Question 22

Progressive tax-

Answer 22

Tax those with higher income @ higher effective tax rate

Question 23

Regressive Tax-

Answer 23

sales tax

Question 24

Proportional tax-

Answer 24

Flat tax

Question 25

Gramm–Rudman–Hollings Balanced Budget Act

Answer 25

The Acts provided for automatic spending cuts (“cancellation of budgetary resources”, called “sequestration”) if the total discretionary appropriations in various categories exceed in a fiscal year the budget spending thresholds

Question 26

Budget Enforcement Act of 1990

Answer 26

The Act created two new budget control processes: a set of caps on annually-appropriated spending, and a “pay-as-you-go” or “PAYGO” process for entitlements and taxes

Question 27

American Recovery and Reinvestment Act of 2009

Answer 27

To respond to the Great Recession,economic stimulus package

Question 28

Performance-based budgeting -

Answer 28

Performance-based budgeting is the practice of developing budgets based on the relationship between program funding levels and expected results from that program

Question 29

The National Performance Review

Answer 29

began on March 3, 1993 when President Clinton announced a six-month review of the federal government and asked Vice President Gore to lead the effort. Unlike past efforts that relied on outsiders, the Vice President gathered experienced federal workers and organized them into teams to examine federal agencies and issues that cut across agencies, such as personnel, procurement or budget policies.

Question 30

The Government Performance and Results Act

Answer 30

• Agencies are required to develop five-year strategic plans
• Agencies are required to prepare annual performance plans
• Agencies must prepare annual performance reports

Question 31

On January 4, 2011, President Obama signed the GPRA Modernization Act of 2010) into law it requires what?

Answer 31

Agencies to publish their strategic and performance plans and reports in machine-readable formats.