PAPP
Which of the following gives the legislative branch the greatest control over unforeseen expenditures during budget execution?
Budget Resolutions
Which of the following best describes the Congressional Budget resolution?
Budget priorities established by Congress
Petroleum reserves represent an example of a
Common-pool goods
A continuing resolution enables an agency to:
Continue operations when a new fiscal year begins before agency appropriation laws have been approved for the year
Local government expenditure is dominated by?
Elementary & secondary education
Local government expenditure is dominated by:
Elementary and secondary education
Impoundment occurs during which stage of the budget process?
Execution
Which federal agency supervises the audits of federal agencies?
GAO The government accountability office
The precept that people who are equals in all relevant ways should be taxed equally is known as:
Horizontal equity
The largest single source of federal revenue is
Individual income tax
Which of the following is correct about the U.S. Government Accountability Office?
It does not report to the president
Toll goods are characterized by:
Joint use (inexhaustible/nonrival) and exclusion feasible
Which of the following is a logical reason for a state to implement a lottery as a way to increase state revenue?
Lotteries are a way for the state to receive money from its citizens without levying a tax
The Budget Enforcement Act of 1990 created two legal categories of federal spending. What are those two categories?
Mandatory and discretionary spending
Which of the following would give evidence of horizontal equity?
None Horizontal equity concerns the comparison of taxpayers with equal capability to pay taxes (the ability to pay principle). Different tax bills from two different jurisdictions, a property tax bill that has increased for an individual from 1985 to 1998, or different property tax bills within the same jurisdiction can't tell you anything about horizontal equity. The different tax bills could be the result of different nominal tax rates, bigger homes, or just an adjustment for time passed. You need effective tax rates to be able to compare if two or more taxpayers with equal capability to pay taxes are being treated 'fairly.' See Mikesell's discussion titled, Equity: Horizontal and Vertical. Also, see Lesson 4.
Which of the following statements is NOT accurate?
None of the above all are accurate Several states do not have a general sales tax. Not all states have individual income taxes. You Answered The tax yielding more state revenue than any other state tax is the individual income tax
Nonappropriability (public goods' characteristics) consists of the following two aspects:
Nonexclusion and nonexhaustion
Which of the following is NOT an agency of the legislative branch?
Office of Management and Budget
Imagine you are the head of the Immigration and Naturalization Service. You find that the agency has spent through half the fiscal year more than the plan envisioned in the agency's appropriation. The problem has emerged because of an unexpected influx of refugees. Which of these actions is most reasonable?
Prepare a request for a supplemental appropriation
If Fred buys a new car, it is a
Private good
The budget process which emphasizes the achievement of goals and competition between alternatives is:
Program Budgeting
The budget process which emphasizes the achievement of goals and competition between alternatives is:
Program Budgeting Agencies that use program budgeting first define their goals and objectives. They then classify the organizational activities that should contribute to each set goal. The agencies then emphasize the achievements of goals and the identification of competing alternatives* by grouping activities according to their end products (outputs and outcomes) regardless of the agencies' functions. So, if the goal of an agency is to ensure public safety, it doesn't matter which department is responsible for this goal. Surely, the police and the fire departments have to coordinate and in some cases compete for resources, but the budget analyst only focuses on those activities and end products (outputs and outcomes) that better achieve the public safety goal.
National defense is
Public Good
Which of the following represents the largest expense for state governments?
Public welfare programs
A tax levied on a business will:
Result in one or more of the above actions depending upon the market conditions the firm faces
Within the federal budget, mandatory spending includes
Social Security and Medicaid
One budget feature that is very different when comparing state and local governments is:
State and local governments may have a single appropriation law covering all expenditures, or they may have many appropriation laws
Which of the following distinctions separates government user chargers from taxes?
Taxes are collected by coercion; user charges are proceeds from voluntary exchange Taxpayers have no choice--they are legally forced to pay a tax if they fall within a particular tax base and they pay the tax whether they receive a service or not. For instance, a taxpayer who owns a property within a city or any other local taxing unit must pay that taxing unit's property tax (which is mostly used for K-12 education) regardless of whether the taxpayer has any children attending the school system. A user charge, by contrast, is only paid by those people who choose to use some service or facility. Ch. 12
Which of the following is a unit excise tax?
The 12 cent per gallon Indiana beer Tax ( Chapter 10)
Most state governors possess extraordinary fiscal powers when compared to powers by the state legislatures. One important power is:
The ability to use line-item veto power to limit spending
The types of budget authority at the federal level include...
appropriations, contract, borrowing, loan and loan-guarantee, and entitlement
Exclusions is not feasible
benefits cannot be limited to those who have paid for the services
Statement A: The 1921 act attempted fiscal responsibility by giving the president stronger budget powers. Statement B: The 1974 act attempted fiscal responsibility by giving Congress stronger budget powers.
both Statements are true
Key to preparing successful agency budget request is the development of:
narrative or budget justification
Which of the following is a special problem associated with line-item budget systems?
none
Vaccinations are an example of:
positive externality
There is rivalry use of
private goods and common-pool goods
One peculiar federal budget feature is that:
the president does not have line-item veto power but governors do
Budget requests are almost always greater than available resources. In most cases requests need to be reduced. How do budget examiners review budget requests?
they examine the policy rationale used by the agency making the request to determine if the request makes sense
A pure public good is characterized by:
Both joint use (nonrivalry - the use by additional people doesn't diminish the good) and exclusion is not feasible.
A state applies a 7 percent sales tax to consumer purchases of many items. These are data for a typical family: Annual Income: $60,000 Family Size: 2 Purchases of taxed items: $30,000 What statutory sales tax rate does the family pay?
7.0%
What is a budget?
A financial plan that focuses on the financial implications of carrying out a particular response to anticipated operating conditions in a future period
Well developed justifications are the key to successful budget requests. Indicate which of the following should be included in budget requests.
Address the current situation, additional needs, and expected results.
What item(s) might be included on a checklist for a budget justification?
All of the above "completeness and explicitness consistency and good organization quantitative data- all are true"
Which of the following is a special problem associated with line-item budget system?
The answer is none of the above: line-item budgets are not complex and officials prefer that format because of its simplicity; the format is all about making it easy for agencies to purchase their inputs at the expense of not showing what was the outcome or result of their use of the inputs; and line-item budgets are the least expensive to prepare because it doesn't require special technical expertise and there is less time involved in the preparation of a line-item budget than any other format.
Which of the following statements about federal government finances is NOT Correct?
The corporate income tax is the second largest source of total revenue for the federal goverment
Which of the following statements about federal government finances is NOT correct?
The corporate income tax is the second largest source of total revenue for the federal government.
Which of the following statements is correct?
The federal government in the United States levies no general sales tax.
Exemption of food purchases from a sales tax reduces regressivity because:
The percent of income spent on food generally falls as family income is higher.
Going to the movies is an example of the use of...
Toll Goods
Government expenditures fall under two main categories. These are:
Transfer payments and government purchases of goods and services
Which of the following pieces of evidence would by itself allow a judgment about the regressivity or progressivity of a tax?
Upper-income families pay a higher effective tax rate than lower-income families
Non-Exhaustion & Non-Rivalry
Use of the service by one person does not preclude concurrent full use by others at no additional cost of providing that service
Which of the following is most likely a common pool resource?
Water Reservoir
You are an administrator in a large new federal agency. You have great ideas for new services that your program could provide in the next fiscal year. In what stage of the budget process will you know how much money will actually be funded and appropriated to your program?
When both houses of Congress have passed appropriations bills and they are approved by the President