Public Policy Key Terms

Question 0

Budget Deficit

Answer 0

Results when fed. expenditures exceed fed. revenues for a one year period.

Question 1

Bipartisanship

Answer 1

Support from both parties for policy, e.g., a bipartisan foreign policy.

Question 2

Deficit Spending

Answer 2

The fed. governments practice of spending more money than it takes in as revenues.

Question 3

Deregulation

Answer 3

Elimination of fed. regulations on private companies.

Question 4

Entitlements (Uncontrollables)

Answer 4

Fed. benefit payments to which recipients have a legal right, e.g., Social Security.

Question 5

Fiscal Policy

Answer 5

Taxing and spending policies

Question 6

Means testing

Answer 6

Requiring that those who receive fed. benefits show a need for them.

Question 7

Monetary Policy

Answer 7

Fed. Reserve Board’s regulation of the supply of money in circulation.

Question 8

National debt (aka Public Debt)

Answer 8

Total debt owned by the fed. gov. due to past borrowing.

Question 9

Subsidy

Answer 9

Fed. financial aid to individuals, e.g., welfare, food stamps, agricultural subsidies.

Question 10

Mandatory spending (Nondiscretionary)

Answer 10

Congress must automatically spend funds. Not up for annual review.

Question 11

Discretionary Spending

Answer 11

Spending that is now required to pay for contracts, interest on the national debt, or entitlement programs such as Social Security.