Question 1

The Flat Tax:

Accepted Answer

A)   Charges a higher rate to the richest Americans.
B)   Charges the same rate to each taxpayer &simplifies the tax filing process
C)   Ends up charging more to the lower income taxpayers.
D)   B and cE) All of the above
F) C) and D)

Question 2

The American Recovery and Reinvestment Act of 2009, is also known as the "Federal Stimulus."

Accepted Answer

A) True 
 B)False

Question 3

The individual who showed that government spending, as a macroeconomic policy, is critical for stimulating the economy was:

Accepted Answer

A)   V. O. Key, Jr.
B)   Allen Schick.
C)   William Willoughby.
D)   John Maynard Keynes.E) A) and C)
F) C) and D)

Question 4

Which of the following are the timed steps in the budget cycle?

Accepted Answer

A)   Preparation & approval
B)   Reporting & Writing
C)   Execution & audit
D)   A and cE) C) and D)
F) B) and C)

Question 5

Legislation that provides budget authority for specific ongoing activities when the regular fiscal-year appropriation for such activities has not been enacted by the beginning of the fiscal year is known as a(n)

Accepted Answer

A)   zero-based budget.
B)   continuing resolution.
C)   executive budget.
D)   performance budget.E) A) and B)
F) A) and C) B

Question 6

Deficit financing:

Accepted Answer

A)   Is loans made by the federal government to subnational governments.
B)   Is a debit in the national Treasury
C)   Is when the government outlays exceed receipts and the government must borrow from the public.
D)   None of the above.E) B) and D)
F) B) and C)

Question 7

The costs of funding the Iraq War were seriously overestimated by the Bush administration's Office of Management and Budget.

Accepted Answer

A) True 
 B)False

Question 8

"Program Budgeting," first proposed in the 1950s by David Novick of the RAND Corporation is a form of budgeting that does all of the following EXCEPT

Accepted Answer

A)   permits global understanding of expenditures, consolidated into programs, focused on effectiveness.
B)   Consolidated spending into "programs"
C)   Ranking programs by order of importance, and facing the possibility of the least important ones being discontinued.
D)   A focus on effectivenessE) All of the above
F) A) and C)

Question 9

Which definition best describes the process of zero-based budgeting (ZBB) ?

Accepted Answer

A)   ZBB is an incremental budgeting process building on last year's shortfalls.
B)   ZBB demands re-justification of the budget from ground zero each time a budget request was submitted.
C)   ZBB is the best example of Lindblom's "muddling through."
D)   None of the above.E) B) and C)
F) All of the above

Question 10

Management consultant Peter Phyrr first developed the theory of___________, for Texas Instruments.

Accepted Answer

A)   program budgeting.
B)   zero-based budgeting.
C)   performance budgeting
D)   line-item budgeting.E) B) and C)
F) B) and D)

Question 11

The progressive tax is best seen within the income tax structure.

Accepted Answer

A) True 
 B)False  True

Question 12

Budgeting is clearly minor component of the decision-making process in government, processes like implementation take precedence.

Accepted Answer

A) True 
 B)False

Question 13

Allocation is a term for ensuring that an appropriate level of funding flows into sectors of the economy where it is required.

Accepted Answer

A) True 
 B)False

Question 14

The government task force in 1912 that recommended the creation of a national budgeting system was the

Accepted Answer

A)   first Hoover Commission.
B)   Taft Commission.
C)   Grace Commission.
D)   Ash Council.E) A) and B)
F) B) and C)

Question 15

Public-private partnerships are joint efforts between local government and the federal government to pay for capital expenditures.

Accepted Answer

A) True 
 B)False

Question 16

Municipal bonds are:

Accepted Answer

A)   Debt instruments of state governments.
B)   Are exempt from federal taxes
C)   Certificates of loans, or promises from a a borrower to a lender to repay principal and interest accrued.
D)   All of the above.E) A) and B)
F) All of the above

Question 17

The American Recovery and Reinvestment Act is an example of Maynard Keynes' "pump priming" efforts by government to stimulate the economy.

Accepted Answer

A) True 
 B)False  True

Question 18

Liberty bonds:

Accepted Answer

A)   Are municipal bonds.
B)   Were recovery bonds created after 9/11.
C)   a and b
D)   None of the above.E) A) and C)
F) C) and D)

Question 19

When Standard and Poor's downgraded the U.S. debt rating in 2011, it created fear that government would not be able to repay its debts.

Accepted Answer

A) True 
 B)False

Question 20

The traditional line item budget's weakness is that it does not show how well appropriations give "value for the money."

Accepted Answer

A) True 
 B)False

Exam 13: Public Financial Management

The Flat Tax:

Correct AnswerverifiedShow Answer

The American Recovery and Reinvestment Act of 2009, is also known as the "Federal Stimulus."

Correct AnswerverifiedShow Answer

The individual who showed that government spending, as a macroeconomic policy, is critical for stimulating the economy was:

Correct AnswerverifiedShow Answer

Which of the following are the timed steps in the budget cycle?

Correct AnswerverifiedShow Answer

Legislation that provides budget authority for specific ongoing activities when the regular fiscal-year appropriation for such activities has not been enacted by the beginning of the fiscal year is known as a(n)

Correct AnswerverifiedB

Deficit financing:

Correct AnswerverifiedShow Answer

The costs of funding the Iraq War were seriously overestimated by the Bush administration's Office of Management and Budget.

Correct AnswerverifiedShow Answer

"Program Budgeting," first proposed in the 1950s by David Novick of the RAND Corporation is a form of budgeting that does all of the following EXCEPT

Correct AnswerverifiedShow Answer

Which definition best describes the process of zero-based budgeting (ZBB) ?

Correct AnswerverifiedShow Answer

Management consultant Peter Phyrr first developed the theory of___________, for Texas Instruments.

Correct AnswerverifiedShow Answer

The progressive tax is best seen within the income tax structure.

Correct AnswerverifiedTrue

Budgeting is clearly minor component of the decision-making process in government, processes like implementation take precedence.

Correct AnswerverifiedShow Answer

Allocation is a term for ensuring that an appropriate level of funding flows into sectors of the economy where it is required.

Correct AnswerverifiedShow Answer

The government task force in 1912 that recommended the creation of a national budgeting system was the

Correct AnswerverifiedShow Answer

Public-private partnerships are joint efforts between local government and the federal government to pay for capital expenditures.

Correct AnswerverifiedShow Answer

Municipal bonds are:

Correct AnswerverifiedShow Answer

The American Recovery and Reinvestment Act is an example of Maynard Keynes' "pump priming" efforts by government to stimulate the economy.

Correct AnswerverifiedTrue

Liberty bonds:

Correct AnswerverifiedShow Answer

When Standard and Poor's downgraded the U.S. debt rating in 2011, it created fear that government would not be able to repay its debts.

Correct AnswerverifiedShow Answer

The traditional line item budget's weakness is that it does not show how well appropriations give "value for the money."

Correct AnswerverifiedShow Answer

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B

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True

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True

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