Chapter 10 Final Econ
Legislation intended to establish a balanced budget was the
Gramm-Rudman-Hollings Bill.
Government helath expenditures include a joint federal-state insurance program
Medicaid
Which act was created in an attempt to trim $500 billion from the deficit over a five year period?
Omnibus Budget Reconciliation Act
Which of the following statements best describes the relationship of the federal deficit to the national debt?
The federal deficit leads to borrowing, which adds to the national debt.
Public sector spending
both directly and indirectly affects how resources are allocated
Since the 1930s, spending by all levels of government as a percentage of GPD
has increased
The largest category of state spending is
intergovernmental expenditures
All levels of government combined consume about
one third of the nation output
The sequence for the approval of the federal budget is
president to Congress and back to president
Transfer payments from the government to individuals might be used to
support Social Security
What role does the Office of Management and Budget (OMB) play in establishing the federal budget?
the OMB assembles the budget under presidental guidelines
Social Security is an example of a
transfer payment
the first federal budget surplus during the past 45 years occured in
1998
In what way is the national debt different from private debt?
The national debt does not have to be repaid by a specific date
Who formulates the federal budgest?
The president
The two broad categories of government spending are
The purchase of goods and services and transfer payments
Which of the following was the main feature of the Budget Enforcement Act of 1990?
a pay-as-you-go provision
Which of the following normally decreases the federal deficit?
an increase in taxes
Which of the following would be considered a grand-in-aid?
an interstate highway construction program
Of the following four categories, which accounts for the largest amount of local expenditures?
elementary and secondary education
which of the following is an example of an entitlement payment?
federal money given to a senior citizen as a Social Security payment
An ecxample of discretionary spending is financing for
national defense
Which of the following is an example of discretionary spending?
national defense