chapter 13: Budget

Question 1

42% of people filing income tax returns in 2009 paid no income tax at all. Which tax is responsible?

Answer 1

Progressive tax

Question 2

Which is an example of intragovernmental debt?

Answer 2

Borrowing insurance tax revenue from social security

Question 3

Which of the following is a tax expenditure given to students?

Answer 3

American Opportunity Credit

Question 4

Which of the following accounts for the longest social policy cost of the federal government?

Answer 4

Social security

Question 5

Which of the following is an example of an excise tax?

Answer 5

Tax levied on the consumption of goods

Question 6

Which of the following is the role of the Government Accountability Office (GAO)?

Answer 6

To monitor what agencies do with their budget

Question 7

Which of the following relationships is an example of how democracy can distort budgeting?

Answer 7

Politicians spend public funds to win votes

Question 8

Which one of the presidents listed below had low budget deficits during his presidency?

Answer 8

Bill Clinton

Question 9

In which of the following years were prescription drugs benefits added to Medicare?

Answer 9

2003

Question 10

Which of the following is the biggest threat to social security?

Answer 10

Retirement of the baby boomers

Question 11

Which of the following is an example of capital gain?

Answer 11

Stock and real estate profits

Question 12

Federal benefits that must be funded by Congress and must be paid to all citizens who meet eligibility criteria are called

Answer 12

Individual entitlements

Question 13

The largest portion of “uncontrollable spending” in the federal budget is designated for which of the following?

Answer 13

Entitlement spending

Question 14

______ threatens the intergenerational contract for Social Security

Answer 14

Increased life expectancy

Question 15

Which of the following does the federal government do when it is unable to cover its expenditures?

Answer 15

Sell bonds

Question 16

To which of the following congressional committees would a proposal to reform the national income tax system initially be sent?

Answer 16

House Ways and Means Committee

Question 17

A balanced budget occurs when the ______ and the supply equals zero.

Answer 17

Deficit

Question 18

A(n) ______ is an act of Congress that funds programs established by authorization bills

Answer 18

Appropriations bill

Question 19

What is the purpose of continuing resolutions?

Answer 19

They allow agencies to spend at the level of the previous year

Question 20

The ______ amendment permits Congress to levy income taxes

Answer 20

16th

Question 21

Which of the following budgetary process actors does the president oversee?

Answer 21

OMB: Office of Management and Budget

Question 22

The constitution states that all revenue bills must originate in

Answer 22

The United States HORs

Question 23

Which of the following illustrates American citizens’ usual attitude toward the budget?

Answer 23

American want to decrease taxes, increase spending, and balance the budget

Question 24

By law, the president must submit a budget by the first Monday in ______. (month)

Answer 24

February

Question 25

A(n) ______ is an act of Congress that binds Congress to a total expenditure level for all programs in a given year

Answer 25

Budget resolution

Question 26

The national debt is ______ of yearly deficit over time

Answer 26

Accumulation

Question 27

According to the OMB, what is the most costly expenditure?

Answer 27

Mandatory domestic policy programs

Question 28

Who benefits most from the military-industrial complex?

Answer 28

Defense contractors

Question 29

A(n) ______ is an act of Congress that establishes or changes a government program

Answer 29

Authorization bill

Question 30

THe deficit is calculated by subtracting total revenue from total ______.

Answer 30

Expenditures

Question 31

Political scientists use the term ______ to describe the budget process.

Answer 31

Incrementalism

Question 32

An example of a discretionary item in the federal budget is

Answer 32

Spending on national parks

Question 33

Who pays income taxes?

Answer 33

Corporations and individuals

Question 34

Which is the largest social policy of the federal government?

Answer 34

Social Security

Question 35

In which of the following years was Medicare included in the Social Security System?

Answer 35

1965

Question 36

Why did the U.S. keep a large permanent military after World War 2?

Answer 36

The Cold War began at the end of World War II

Question 37

Which of the following is the role of the Congressional Budget Office?

Answer 37

To advise Congress on consequences of its budget decisions