Managing the Budget (Quiz)

Which of the following is NOT a program that receives government outlays?

A. corporations

John walks into a grocery store and suddenly realizes that the prices on most of his favorite imported products are reduced. Which of the following is the most likely cause of the price drop?

A. i only

Which of the following pieces of legislation makes it clear that budget bills should focus only on the budget and not on changing other laws?

A. the Byrd Rule

The budget resolution required by the Congressional Budget Act of 1974 must be passed by both the __________.

B. Senate and House of Representatives

The Congressional Budget Act of 1974 requires Congress to submit a budget resolution each year. What happens if Congress cannot agree on a budget resolution?

B. The previous year's budget resolution is used.

The PAYGO Budget Rule applies to which of the following government expenses?

B. entitlement programs

One of the many advantages to a balanced budget is that it stabilizes interest rates. What does the word stabilize mean?

B. to make consistent

The annual budget resolutions required by the Congressional Budget Act of 1974 are based on recommendations from the Office of Budget Management and the __________.

C. President of the United States

Andrea has had a savings account for ten years. She noticed over the last two years that the interest rates on her savings account went up in the first year and down in the second year. Which of the following budget scenarios BEST explains this transition?

D. first an unbalanced budget, then a balanced budget

A budget deficit results when government outlays exceed its revenue.

T

If a budget dives into deficit and then into surplus in the same year, the budget is considered balanced.

T