Deck 17: Cost of Policy

Question 1

Budgeting establishes priorities and plans to accomplish priorities.

Answer 1

True

Question 2

It is estimated that by 2010, the U.S. national debt will be

A) around $3 trillion.
B) around $5 trillion.
C) around $7 trillion.
D) around $11 trillion.

Answer 2

D

Question 3

According to Wagner's Law,

A) budget cuts must be made "across the board."
B) entitlement programs should be funded before all other items.
C) government budget size parallels the growth of the private sector.
D) Lockean liberalism would have prevented deficit spending.

Answer 3

C

Question 4

The Ways and Means Committee

A) is a committee in the House of Representatives managing revenue issues.
B) is a committee in the Senate managing spending issues.
C) is a committee made up of the president, secretary of treasury, and OMD director.
D) is a committee that oversees the executive budget process.

Question 5

Why doesn't the U.S. Treasury give agencies their entire appropriation in one sum?

A) Because Congress is in charge of dispersal
B) Treasury doesn't have that much money
C) For reasons of accountability
D) Both b and c

Question 6

An "earmark" is more commonly referred to as

A) pork-barrel spending.
B) trust-fund money.
C) line-item budgeting.
D) legislative authorization.

Question 7

In national budgeting, the largest revenue stream is

A) corporate income tax.
B) fuel tax.
C) personal income tax.
D) death tax.

Question 8

Modern liberals tend to favor flat taxes while classical liberals tend to favor graduated tax rates.

Question 9

The Seventeenth Amendment to the Constitution authorized Congress to levy

A) energy taxes.
B) personal income taxes.
C) excessive wealth taxes.
D) tariffs on imported goods.

Question 10

In studying the charts in your textbook, generally speaking, the national debt as a proportion of GNP

A) has risen steadily over the last thirty years.
B) remains unchanged since the Truman administration.
C) rises during Republican presidencies and falls during Democratic administrations.
D) None of the above