This Quiz Is On The Federal Budget

10 Questions | Total Attempts: 93

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Budget Quizzes & Trivia

The federal budget makes up almost 21 percent of the United States economy. The spending is divided into mandatory, discretionary and interest expenses. How well do you understand the federal budget, how it is prepared and how it has increased over time? Take up the quiz below and find out.


Questions and Answers
  • 1. 
    Which of the following functions is given specific constitutional power of the purse?
    • A. 

      Office of Management and Budget

    • B. 

      President

    • C. 

      Congress

    • D. 

      Special interest groups

    • E. 

      Executive agencies

  • 2. 
    If congress does not pass a budget by the beginning of the fiscal year, then which of the following takes place?
    • A. 

      The president can impose a budget to keep the government running.

    • B. 

      The Courts can step in and create a temporary budget.

    • C. 

      The congress must pass a continuing resolution.

    • D. 

      Government offices are automatically shut down.

    • E. 

      The contigency budget goes into effect.

  • 3. 
    The federal government may borrow money from all the following EXCEPT:
    • A. 

      Trust funds.

    • B. 

      Foreign investors.

    • C. 

      Commercial banks.

    • D. 

      Money market funds.

    • E. 

      The United States Treasury.

  • 4. 
    As a result of President Nixon's practice of cutting off funds for programs he felt would increase the budget,
    • A. 

      Congress passed the line item veto.

    • B. 

      Congress passed the Congressional Budget and Impoundment Control Act.

    • C. 

      The Supreme court ruled the practice unconstituional.

    • D. 

      A balanced budget amendment was passed.

    • E. 

      The Gramm-Rudman-Hollings Emergency Deficit Control Act.

  • 5. 
    Which of the following componenets was part of President Regan's 1981 tax bill?
    • A. 

      A significant increase in the number of tax deductions allowed.

    • B. 

      A decrease in the number of tax brackets.

    • C. 

      A decrease in the deficit.

    • D. 

      A larger tax cut for the lower class than the upper class.

    • E. 

      An increase in the capital gains tax.

  • 6. 
    Over the past 20 years which of the following areas has shown the greatest increase in budgetary spending.?
    • A. 

      The defense budget

    • B. 

      Federal operations

    • C. 

      Federal grants

    • D. 

      Discretionary spending

    • E. 

      Entitlements

  • 7. 
    Which of the following areas gives the federal government the greatest amount of income?
    • A. 

      Income taxes

    • B. 

      Social Security and payroll taxes

    • C. 

      Corporate taxes

    • D. 

      Luxury taxes

    • E. 

      Money collected from tariffs

  • 8. 
    All the following are attempts at lowering the nation's deficit EXCEPT:
    • A. 

      The attempt to pass a balanced budget constitutional amendment.

    • B. 

      A change in the welfare system forcing people to work.

    • C. 

      The proposal to institute means testing in order to get Social Security.

    • D. 

      The proposal to institute means testing for Medicare.

    • E. 

      The creation of the National Service Program.

  • 9. 
    Proponents of the plan to privatize Social Security argue that
    • A. 

      Investments in Social Security would increase.

    • B. 

      The stock market's volatility increases the investment return.

    • C. 

      There is a shrinking number of baby boomers in need of Social Security

    • D. 

      The government has a surplus in the Social Security trust fund that will last through the twenty-first century.

    • E. 

      Senior citizens favor this reform.

  • 10. 
    According to many pollsters, a defining event that voters remembered during the 1992 presidential campaign was
    • A. 

      President Bush's no new tax pledge.

    • B. 

      President Bush's handling of the Gulf War.

    • C. 

      President Bush's success in vetoing Democratic spending proposals.

    • D. 

      President Bush's proclamation that the cold war was over.

    • E. 

      President Bush's agreement with Russia to destroy nuclear arsenals.