Question 1

Matching Exercise
Match the concepts in the left-hand column to their counterparts in the right-hand column.
-Zero-based budgeting

Accepted Answer

A)  A tax where the ratio of tax to income increases as a taxpayer's income rises. 
B)  Numeric codes used by governments to classify expenditures by categories. 
C)  A selective sales tax imposed on certain items, in part, to regulate consumption. 
D)  A type of budgeting where a program's continued existence is not assumed and all expenditures, not just new ones, must be justified every year. 
E)  A type of budgeting that reports the items to be purchased by a government, and the amount of money that will be spent on each item.
F) A charge for a service that is levied by government.
G) A type of budgeting that combines output and cost data from programs to show if they are being efficiently operated.
H) A mechanism that reduces the regressivity of property tax by exempting low-income groups from some portion of their property taxes.
I) Long-term debt that is guaranteed by the entire revenue capacity of the issuing government.
J) Long-term debt in which the principal and interest are paid off using the revenues generated by the facility built with the funds from the bond. 
A)  A tax where the ratio of tax to income increases as a taxpayer's income rises. 
B)  Numeric codes used by governments to classify expenditures by categories. 
C)  A selective sales tax imposed on certain items, in part, to regulate consumption. 
D)  A type of budgeting where a program's continued existence is not assumed and all expenditures, not just new ones, must be justified every year. 
E)  A type of budgeting that reports the items to be purchased by a government, and the amount of money that will be spent on each item.
F) A charge for a service that is levied by government.
G) A type of budgeting that combines output and cost data from programs to show if they are being efficiently operated.
H) A mechanism that reduces the regressivity of property tax by exempting low-income groups from some portion of their property taxes.
I) Long-term debt that is guaranteed by the entire revenue capacity of the issuing government.
J) Long-term debt in which the principal and interest are paid off using the revenues generated by the facility built with the funds from the bond. D

Question 2

Which of the following is NOT a source of revenue for the government?

Accepted Answer

A)  tax rebates 
B)  fees 
C)  taxes 
D)  intergovernmental transfers 
E)  borrowing 
A)  tax rebates 
B)  fees 
C)  taxes 
D)  intergovernmental transfers 
E)  borrowing A

Question 3

Lottery proceeds can fluctuate from year to year making it difficult for state governments to budget accurately.

Accepted Answer

A) True 
 B)False  True

Question 4

Matching Exercise
Match the concepts in the left-hand column to their counterparts in the right-hand column.
-Progressive tax

Accepted Answer

A)  A tax where the ratio of tax to income increases as a taxpayer's income rises. 
B)  Numeric codes used by governments to classify expenditures by categories. 
C)  A selective sales tax imposed on certain items, in part, to regulate consumption. 
D)  A type of budgeting where a program's continued existence is not assumed and all expenditures, not just new ones, must be justified every year. 
E)  A type of budgeting that reports the items to be purchased by a government, and the amount of money that will be spent on each item.
F) A charge for a service that is levied by government.
G) A type of budgeting that combines output and cost data from programs to show if they are being efficiently operated.
H) A mechanism that reduces the regressivity of property tax by exempting low-income groups from some portion of their property taxes.
I) Long-term debt that is guaranteed by the entire revenue capacity of the issuing government.
J) Long-term debt in which the principal and interest are paid off using the revenues generated by the facility built with the funds from the bond. 
A)  A tax where the ratio of tax to income increases as a taxpayer's income rises. 
B)  Numeric codes used by governments to classify expenditures by categories. 
C)  A selective sales tax imposed on certain items, in part, to regulate consumption. 
D)  A type of budgeting where a program's continued existence is not assumed and all expenditures, not just new ones, must be justified every year. 
E)  A type of budgeting that reports the items to be purchased by a government, and the amount of money that will be spent on each item.
F) A charge for a service that is levied by government.
G) A type of budgeting that combines output and cost data from programs to show if they are being efficiently operated.
H) A mechanism that reduces the regressivity of property tax by exempting low-income groups from some portion of their property taxes.
I) Long-term debt that is guaranteed by the entire revenue capacity of the issuing government.
J) Long-term debt in which the principal and interest are paid off using the revenues generated by the facility built with the funds from the bond.

Question 5

The type of bond that will result in governmental default if debt payments are not made is called a

Accepted Answer

A)  general obligation bond. 
B)  nonguaranteed bond. 
C)  federal savings bond. 
D)  municipal bond. 
E)  fully guaranteed bond. 
A)  general obligation bond. 
B)  nonguaranteed bond. 
C)  federal savings bond. 
D)  municipal bond. 
E)  fully guaranteed bond.

Question 6

Which of the following statements about PPBS is TRUE?

Accepted Answer

A)  PPBS is the prevailing approach to budgeting in the federal government. 
B)  PPBS was abandoned during the Reagan administration. 
C)  A key element of PPBS was its multi-year perspective that provided for five-year plans. 
D)  All of the above are true. 
E)  None of the above are true. 
A)  PPBS is the prevailing approach to budgeting in the federal government. 
B)  PPBS was abandoned during the Reagan administration. 
C)  A key element of PPBS was its multi-year perspective that provided for five-year plans. 
D)  All of the above are true. 
E)  None of the above are true.

Question 7

Which of the following is NOT a purpose of public budgeting?

Accepted Answer

A)  a means by which a government exercises control over its programs 
B)  enhancing economic growth 
C)  a mechanism for government accountability 
D)  All of the above are purposes of government budgeting. 
E)  None of the above are purposes of government budgeting. 
A)  a means by which a government exercises control over its programs 
B)  enhancing economic growth 
C)  a mechanism for government accountability 
D)  All of the above are purposes of government budgeting. 
E)  None of the above are purposes of government budgeting.

Question 8

Matching Exercise
Match the concepts in the left-hand column to their counterparts in the right-hand column.
-Objects of expenditure

Accepted Answer

A)  A tax where the ratio of tax to income increases as a taxpayer's income rises. 
B)  Numeric codes used by governments to classify expenditures by categories. 
C)  A selective sales tax imposed on certain items, in part, to regulate consumption. 
D)  A type of budgeting where a program's continued existence is not assumed and all expenditures, not just new ones, must be justified every year. 
E)  A type of budgeting that reports the items to be purchased by a government, and the amount of money that will be spent on each item.
F) A charge for a service that is levied by government.
G) A type of budgeting that combines output and cost data from programs to show if they are being efficiently operated.
H) A mechanism that reduces the regressivity of property tax by exempting low-income groups from some portion of their property taxes.
I) Long-term debt that is guaranteed by the entire revenue capacity of the issuing government.
J) Long-term debt in which the principal and interest are paid off using the revenues generated by the facility built with the funds from the bond. 
A)  A tax where the ratio of tax to income increases as a taxpayer's income rises. 
B)  Numeric codes used by governments to classify expenditures by categories. 
C)  A selective sales tax imposed on certain items, in part, to regulate consumption. 
D)  A type of budgeting where a program's continued existence is not assumed and all expenditures, not just new ones, must be justified every year. 
E)  A type of budgeting that reports the items to be purchased by a government, and the amount of money that will be spent on each item.
F) A charge for a service that is levied by government.
G) A type of budgeting that combines output and cost data from programs to show if they are being efficiently operated.
H) A mechanism that reduces the regressivity of property tax by exempting low-income groups from some portion of their property taxes.
I) Long-term debt that is guaranteed by the entire revenue capacity of the issuing government.
J) Long-term debt in which the principal and interest are paid off using the revenues generated by the facility built with the funds from the bond.

Question 9

Which of the following is NOT a distinction between capital and operating expenses?

Accepted Answer

A)  Borrowing is typically used to finance capital items while taxes and user fees are mostly used to finance operating expenditures. 
B)  Taxes and user fees are mostly used to finance day-to-day expenses while capital projects are expected to have a long useful life. 
C)  The federal government does not divide the budget into separate parts, (operating expenses and capital investments) while most state and local governments do. 
D)  All of the above are distinctions between capital and operating expenses. 
E)  None of the above are distinctions between capital and operating expenses. 
A)  Borrowing is typically used to finance capital items while taxes and user fees are mostly used to finance operating expenditures. 
B)  Taxes and user fees are mostly used to finance day-to-day expenses while capital projects are expected to have a long useful life. 
C)  The federal government does not divide the budget into separate parts, (operating expenses and capital investments) while most state and local governments do. 
D)  All of the above are distinctions between capital and operating expenses. 
E)  None of the above are distinctions between capital and operating expenses.

Question 10

The property tax is generally considered regressive.

Accepted Answer

A) True 
 B)False

Question 11

The federal government's experience with zero-based budgeting was generally positive which explains why it remains largely in use today.

Accepted Answer

A) True 
 B)False

Question 12

Matching Exercise
Match the concepts in the left-hand column to their counterparts in the right-hand column.
-Performance budgeting

Accepted Answer

A)  A tax where the ratio of tax to income increases as a taxpayer's income rises. 
B)  Numeric codes used by governments to classify expenditures by categories. 
C)  A selective sales tax imposed on certain items, in part, to regulate consumption. 
D)  A type of budgeting where a program's continued existence is not assumed and all expenditures, not just new ones, must be justified every year. 
E)  A type of budgeting that reports the items to be purchased by a government, and the amount of money that will be spent on each item.
F) A charge for a service that is levied by government.
G) A type of budgeting that combines output and cost data from programs to show if they are being efficiently operated.
H) A mechanism that reduces the regressivity of property tax by exempting low-income groups from some portion of their property taxes.
I) Long-term debt that is guaranteed by the entire revenue capacity of the issuing government.
J) Long-term debt in which the principal and interest are paid off using the revenues generated by the facility built with the funds from the bond. 
A)  A tax where the ratio of tax to income increases as a taxpayer's income rises. 
B)  Numeric codes used by governments to classify expenditures by categories. 
C)  A selective sales tax imposed on certain items, in part, to regulate consumption. 
D)  A type of budgeting where a program's continued existence is not assumed and all expenditures, not just new ones, must be justified every year. 
E)  A type of budgeting that reports the items to be purchased by a government, and the amount of money that will be spent on each item.
F) A charge for a service that is levied by government.
G) A type of budgeting that combines output and cost data from programs to show if they are being efficiently operated.
H) A mechanism that reduces the regressivity of property tax by exempting low-income groups from some portion of their property taxes.
I) Long-term debt that is guaranteed by the entire revenue capacity of the issuing government.
J) Long-term debt in which the principal and interest are paid off using the revenues generated by the facility built with the funds from the bond.

Question 13

The property tax is considered a low-yield tax while income taxes are considered high-yield.

Accepted Answer

A) True 
 B)False

Question 14

The general sales tax is regressive because low-income persons spend a greater percentage of their disposable income on consumer goods than do high-income persons.

Accepted Answer

A) True 
 B)False

Question 15

The Government Accountability Office, an agency of Congress, provides the audit function for the federal government.

Accepted Answer

A) True 
 B)False

Question 16

User fees are viewed by finance specialists as a fair method of obtaining revenues because frequent users pay more for the service than do infrequent users.

Accepted Answer

A) True 
 B)False

Question 17

Incremental budgeting has been attacked because it

Accepted Answer

A)  is subject to fraud, waste, and abuse. 
B)  is overly cautious and biased against innovative alternatives. 
C)  is impossible to implement 
D)  All of the above are criticisms of incremental budgeting. 
E)  None of the above are criticisms of incremental budgeting. 
A)  is subject to fraud, waste, and abuse. 
B)  is overly cautious and biased against innovative alternatives. 
C)  is impossible to implement 
D)  All of the above are criticisms of incremental budgeting. 
E)  None of the above are criticisms of incremental budgeting.

Question 18

Budgets typically cover a definite time period; typically five years.

Accepted Answer

A) True 
 B)False

Question 19

Income tax is an example of a regressive tax.

Accepted Answer

A) True 
 B)False

Question 20

Matching Exercise
Match the concepts in the left-hand column to their counterparts in the right-hand column.
-Line-item budget

Accepted Answer

A)  A tax where the ratio of tax to income increases as a taxpayer's income rises. 
B)  Numeric codes used by governments to classify expenditures by categories. 
C)  A selective sales tax imposed on certain items, in part, to regulate consumption. 
D)  A type of budgeting where a program's continued existence is not assumed and all expenditures, not just new ones, must be justified every year. 
E)  A type of budgeting that reports the items to be purchased by a government, and the amount of money that will be spent on each item.
F) A charge for a service that is levied by government.
G) A type of budgeting that combines output and cost data from programs to show if they are being efficiently operated.
H) A mechanism that reduces the regressivity of property tax by exempting low-income groups from some portion of their property taxes.
I) Long-term debt that is guaranteed by the entire revenue capacity of the issuing government.
J) Long-term debt in which the principal and interest are paid off using the revenues generated by the facility built with the funds from the bond. 
A)  A tax where the ratio of tax to income increases as a taxpayer's income rises. 
B)  Numeric codes used by governments to classify expenditures by categories. 
C)  A selective sales tax imposed on certain items, in part, to regulate consumption. 
D)  A type of budgeting where a program's continued existence is not assumed and all expenditures, not just new ones, must be justified every year. 
E)  A type of budgeting that reports the items to be purchased by a government, and the amount of money that will be spent on each item.
F) A charge for a service that is levied by government.
G) A type of budgeting that combines output and cost data from programs to show if they are being efficiently operated.
H) A mechanism that reduces the regressivity of property tax by exempting low-income groups from some portion of their property taxes.
I) Long-term debt that is guaranteed by the entire revenue capacity of the issuing government.
J) Long-term debt in which the principal and interest are paid off using the revenues generated by the facility built with the funds from the bond.

Matching Exercise Match the concepts in the left-hand column to their counterparts in the right-hand column. -Zero-based budgeting

Which of the following is NOT a source of revenue for the government?

Lottery proceeds can fluctuate from year to year making it difficult for state governments to budget accurately.

Matching Exercise Match the concepts in the left-hand column to their counterparts in the right-hand column. -Progressive tax

The type of bond that will result in governmental default if debt payments are not made is called a

Which of the following statements about PPBS is TRUE?

Which of the following is NOT a purpose of public budgeting?

Matching Exercise Match the concepts in the left-hand column to their counterparts in the right-hand column. -Objects of expenditure

Which of the following is NOT a distinction between capital and operating expenses?

The property tax is generally considered regressive.

The federal government's experience with zero-based budgeting was generally positive which explains why it remains largely in use today.

Matching Exercise Match the concepts in the left-hand column to their counterparts in the right-hand column. -Performance budgeting

The property tax is considered a low-yield tax while income taxes are considered high-yield.

The general sales tax is regressive because low-income persons spend a greater percentage of their disposable income on consumer goods than do high-income persons.

The Government Accountability Office, an agency of Congress, provides the audit function for the federal government.

User fees are viewed by finance specialists as a fair method of obtaining revenues because frequent users pay more for the service than do infrequent users.

Incremental budgeting has been attacked because it

Budgets typically cover a definite time period; typically five years.

Income tax is an example of a regressive tax.

Matching Exercise Match the concepts in the left-hand column to their counterparts in the right-hand column. -Line-item budget

Public Service in the Twenty-First Century 1

The Growth of Government and Administration

Ethics and Public Administration

The Political Ecology of Public Administration: the Institutional Context of Public Policy

Federalism and Public Administration

Civil Society and Public Administration

Theories of Organization and Public Administration

The Organizational Dimensions of Public Administration

Motivation, Decision Making, and Organizational Culture

Leadership in Public Administration

The Policy Process

Privatization and Public Administration

Human Resource Administrationin Public Organizations

Public Administrations Role in Environmental Issuesand Climate Change

Filters

Exam 13: Public Budgeting and Finance

Matching Exercise Match the concepts in the left-hand column to their counterparts in the right-hand column. -Zero-based budgeting

Which of the following is NOT a source of revenue for the government?

Lottery proceeds can fluctuate from year to year making it difficult for state governments to budget accurately.

Matching Exercise Match the concepts in the left-hand column to their counterparts in the right-hand column. -Progressive tax

The type of bond that will result in governmental default if debt payments are not made is called a

Which of the following statements about PPBS is TRUE?

Which of the following is NOT a purpose of public budgeting?

Matching Exercise Match the concepts in the left-hand column to their counterparts in the right-hand column. -Objects of expenditure

Which of the following is NOT a distinction between capital and operating expenses?

The property tax is generally considered regressive.

The federal government's experience with zero-based budgeting was generally positive which explains why it remains largely in use today.

Matching Exercise Match the concepts in the left-hand column to their counterparts in the right-hand column. -Performance budgeting

The property tax is considered a low-yield tax while income taxes are considered high-yield.

The general sales tax is regressive because low-income persons spend a greater percentage of their disposable income on consumer goods than do high-income persons.

The Government Accountability Office, an agency of Congress, provides the audit function for the federal government.

User fees are viewed by finance specialists as a fair method of obtaining revenues because frequent users pay more for the service than do infrequent users.

Incremental budgeting has been attacked because it

Budgets typically cover a definite time period; typically five years.

Income tax is an example of a regressive tax.

Matching Exercise Match the concepts in the left-hand column to their counterparts in the right-hand column. -Line-item budget

Public Service in the Twenty-First Century 1

The Growth of Government and Administration

Ethics and Public Administration

The Political Ecology of Public Administration: the Institutional Context of Public Policy

Federalism and Public Administration

Civil Society and Public Administration

Theories of Organization and Public Administration

The Organizational Dimensions of Public Administration

Motivation, Decision Making, and Organizational Culture

Leadership in Public Administration

The Policy Process

Privatization and Public Administration

Human Resource Administrationin Public Organizations

Public Administrations Role in Environmental Issuesand Climate Change

Filters