Question 1

A continuing resolution allows spending to go on

Accepted Answer

A) as long as the resolution states. 
B) for no longer than a week. 
C) for no longer than a year. 
D) for no longer than a day. 
A) as long as the resolution states. 
B) for no longer than a week. 
C) for no longer than a year. 
D) for no longer than a day.

Question 2

The federal spending appropriation for Education and Training in Fiscal Year 2016 was

Accepted Answer

A) $3 billion. 
B) $13 billion. 
C) $114 billion. 
D) $183 billion. 
A) $3 billion. 
B) $13 billion. 
C) $114 billion. 
D) $183 billion.

Question 3

Between 2009 and 2011, Federal Spending as a percentage of GDP ranged between

Accepted Answer

A) 16% and 22%. 
B) 22% and 25%. 
C) 35% and 45%. 
D) 47% and 61%. 
A) 16% and 22%. 
B) 22% and 25%. 
C) 35% and 45%. 
D) 47% and 61%.

Question 4

The Obama Stimulus Plan of 2009 consisted of

Accepted Answer

A) $787 billion in tax cuts. 
B) tax cuts, federal spending increases and aid to states. 
C) $787 billion in immediate federal spending increases. 
D) income tax rebate checks delivered to households in key states. 
A) $787 billion in tax cuts. 
B) tax cuts, federal spending increases and aid to states. 
C) $787 billion in immediate federal spending increases. 
D) income tax rebate checks delivered to households in key states.

Question 5

Programs such as Social Security and Medicare

Accepted Answer

A) have to be re-authorized every year. 
B) do not require re-authorization. 
C) can be cut by the President without congressional approval. 
D) have to be re-authorized every year and can be cut by the President without congressional approval. 
A) have to be re-authorized every year. 
B) do not require re-authorization. 
C) can be cut by the President without congressional approval. 
D) have to be re-authorized every year and can be cut by the President without congressional approval.

Question 6

Projections of the trajectory of inflation adjusted health spending made in 2016 had

Accepted Answer

A) it growing. 
B) it falling. 
C) it remaining relatively constant. 
D) it acting like a sine wave. 
A) it growing. 
B) it falling. 
C) it remaining relatively constant. 
D) it acting like a sine wave.

Question 7

Suppose there was a debate regarding how to spend $1 billion in newly found revenues in the budget. Suppose the most liberal Democrat suggests an increase to Food Stamp (SNAP)allotments. Suppose the most conservative Republican suggests an increase in defense spending. The Democrat says that, on average, Food Stamp spending does the most good so more is better. The Republican is arguing that the extra security purchased by the extra spending will increase well-being the most. What is going on here?

Accepted Answer

A) Both are employing marginal analysis, just from different perspectives 
B) Only the Democrat is using marginal analysis. 
C) Only the Republican is using marginal analysis. 
D) Neither are using marginal analysis. 
A) Both are employing marginal analysis, just from different perspectives 
B) Only the Democrat is using marginal analysis. 
C) Only the Republican is using marginal analysis. 
D) Neither are using marginal analysis.

Question 8

The large budget deficits of 2003 and 2006 meant that the federal government was borrowing upwards of $1.7 trillion over this four-year period. If that borrowing limits the ability of the private sector to get financial capital for its purposes economists would call this

Accepted Answer

A) crowding in. 
B) forcing in. 
C) crowding out. 
D) forcing aside. 
A) crowding in. 
B) forcing in. 
C) crowding out. 
D) forcing aside.

Question 9

When Congressional decision makers chose not to raise taxes to fight the war on terrorism they

Accepted Answer

A) eliminated the opportunity cost of war. 
B) borrowed the money, moving the opportunity cost into higher interest rates and/or crowding out. 
C) exploited the fact that borrowed money has no opportunity cost. 
D) printed all of the money required to fight the war on terrorism. 
A) eliminated the opportunity cost of war. 
B) borrowed the money, moving the opportunity cost into higher interest rates and/or crowding out. 
C) exploited the fact that borrowed money has no opportunity cost. 
D) printed all of the money required to fight the war on terrorism.

Question 10

The long-established trend toward increasing mandatory federal spending was interrupted by the

Accepted Answer

A) new lunar landing mission. 
B) Medicare prescription drug plan. 
C) retirement of aging baby boomers. 
D) Obama Stimulus Plan of 2009. 
A) new lunar landing mission. 
B) Medicare prescription drug plan. 
C) retirement of aging baby boomers. 
D) Obama Stimulus Plan of 2009.

Question 11

Prior to September 11, 2001, defense spending had ______ in inflation adjusted terms over the past 10 years and was at its ________ by that measure since WWII.

Accepted Answer

A) risen; highest 
B) risen; lowest 
C) fallen; highest 
D) fallen; lowest 
A) risen; highest 
B) risen; lowest 
C) fallen; highest 
D) fallen; lowest

Question 12

The appropriations process is

Accepted Answer

A) always smooth, regardless of the political landscape. 
B) always rough, especially when the same political party controls both Congress and the White House. 
C) seldom smooth, especially when different parties control Congress and the White House. 
D) characterized by brief and dignified budget debates. 
A) always smooth, regardless of the political landscape. 
B) always rough, especially when the same political party controls both Congress and the White House. 
C) seldom smooth, especially when different parties control Congress and the White House. 
D) characterized by brief and dignified budget debates.

Question 13

In advising Congress and the President on how much to increase defense spending in response to security concerns, economists would suggest that they evaluate the

Accepted Answer

A) total cost of defense versus its total benefit. 
B) average cost per citizen of defense versus its average benefit. 
C) marginal cost of each additional dollar spent on defense versus its marginal benefit. 
D) median cost per citizen of defense versus its median benefit. 
A) total cost of defense versus its total benefit. 
B) average cost per citizen of defense versus its average benefit. 
C) marginal cost of each additional dollar spent on defense versus its marginal benefit. 
D) median cost per citizen of defense versus its median benefit.

Question 14

Discretionary Spending makes up

Accepted Answer

A) just over 30% of all federal spending. 
B) just over 50% of all federal spending. 
C) exactly half of all federal spending. 
D) well over 65% of all federal spending. 
A) just over 30% of all federal spending. 
B) just over 50% of all federal spending. 
C) exactly half of all federal spending. 
D) well over 65% of all federal spending.

Question 15

In planning for a Fiscal year which of the following is supposed to happen first

Accepted Answer

A) an appropriations bill. 
B) a continuing resolution. 
C) a budget bill. 
D) a Presidential veto. 
A) an appropriations bill. 
B) a continuing resolution. 
C) a budget bill. 
D) a Presidential veto.

Question 16

After the September 11, 2001 terrorist attacks federal government spending

Accepted Answer

A) was cut. 
B) increased, but at a rate much slower than it had before the attacks. 
C) increased, but at a rate almost exactly the same as it had before the attacks. 
D) increased at a rate much faster than it had before the attacks. 
A) was cut. 
B) increased, but at a rate much slower than it had before the attacks. 
C) increased, but at a rate almost exactly the same as it had before the attacks. 
D) increased at a rate much faster than it had before the attacks.

Question 17

Suppose there was a debate regarding intelligence budgets and the Democrat was arguing for a budget increase from $40 billion to $41 billion and the Republican was arguing for the budget to increase to $45 billion. Further suppose intelligence salaries and procurement of the same spy systems are project to rise 5%. The Republican accuses the Democrat of proposing a cut to intelligence gathering, the Democrat insists his plan increases that spending. What is going on here?

Accepted Answer

A) The Democrat is cutting only if you use current services budgeting. 
B) The Republican is cutting only if you use baseline budgeting. 
C) Both are proposing increases. The Republican is lying regardless of budgeting technique. 
D) Both are proposing cuts. They are both lying regardless of budgeting technique. 
A) The Democrat is cutting only if you use current services budgeting. 
B) The Republican is cutting only if you use baseline budgeting. 
C) Both are proposing increases. The Republican is lying regardless of budgeting technique. 
D) Both are proposing cuts. They are both lying regardless of budgeting technique.

Question 18

Generally, economists believe that crowding out is

Accepted Answer

A) complete; one extra dollar in government spending decreases private spending by a dollar. 
B) complete fiction. 
C) important but less than complete; one extra dollar of government spending decreases private spending by less than a dollar. 
D) actually reversed; one extra dollar of government spending increases private spending. 
A) complete; one extra dollar in government spending decreases private spending by a dollar. 
B) complete fiction. 
C) important but less than complete; one extra dollar of government spending decreases private spending by less than a dollar. 
D) actually reversed; one extra dollar of government spending increases private spending.

Question 19

Suppose there was a debate regarding how to spend $1 billion in newly found revenues in the budget. Suppose the centrist Democrat suggests an increase to infrastructure spending. Suppose the centrist Republican suggests an increase in cyber-defense spending. The Democrat says that the extra infrastructure spending will decrease travel times and be the most valuable. The Republican is arguing that, on average, cyber-security is worth the money so more is better. What is going on here?

Accepted Answer

A) Both are employing marginal analysis, just from different perspectives 
B) Only the Democrat is using marginal analysis. 
C) Only the Republican is using marginal analysis. 
D) Neither are using marginal analysis. 
A) Both are employing marginal analysis, just from different perspectives 
B) Only the Democrat is using marginal analysis. 
C) Only the Republican is using marginal analysis. 
D) Neither are using marginal analysis.

Question 20

Suppose there was a debate regarding Medicaid budgets and the Democrat was arguing for a budget increase from $400 billion to $500 billion and the Republican was arguing for the budget to increase to only $410 billion. Further suppose health care costs are projected to remain constant though the number of eligible people is projected to rise 10%. The Democrat accuses the Republican of proposing a cut to health care, the Republican insists his plan increases Medicaid spending. What is going on here?

Accepted Answer

A) The Republican is cutting Medicaid only if you use current services budgeting. 
B) The Republican is cutting Medicaid only if you use baseline budgeting. 
C) Both are proposing increases. The Democrat is lying regardless of budgeting technique. 
D) Both are proposing cuts. They are both lying regardless of budgeting technique. 
A) The Republican is cutting Medicaid only if you use current services budgeting. 
B) The Republican is cutting Medicaid only if you use baseline budgeting. 
C) Both are proposing increases. The Democrat is lying regardless of budgeting technique. 
D) Both are proposing cuts. They are both lying regardless of budgeting technique.

Exam 11: Federal Spending

A continuing resolution allows spending to go on

The federal spending appropriation for Education and Training in Fiscal Year 2016 was

Between 2009 and 2011, Federal Spending as a percentage of GDP ranged between

The Obama Stimulus Plan of 2009 consisted of

Programs such as Social Security and Medicare

Projections of the trajectory of inflation adjusted health spending made in 2016 had

The large budget deficits of 2003 and 2006 meant that the federal government was borrowing upwards of $1.7 trillion over this four-year period. If that borrowing limits the ability of the private sector to get financial capital for its purposes economists would call this

When Congressional decision makers chose not to raise taxes to fight the war on terrorism they

The long-established trend toward increasing mandatory federal spending was interrupted by the

Prior to September 11, 2001, defense spending had ______ in inflation adjusted terms over the past 10 years and was at its ________ by that measure since WWII.

The appropriations process is

In advising Congress and the President on how much to increase defense spending in response to security concerns, economists would suggest that they evaluate the

Discretionary Spending makes up

In planning for a Fiscal year which of the following is supposed to happen first

After the September 11, 2001 terrorist attacks federal government spending

Generally, economists believe that crowding out is

Economics: the Study of Opportunity Cost

Supply and Demand

The Concept of Elasticity and Consumer and Producer Surplus

Firm Production, Cost, and Revenue

Perfect Competition, Monopoly, and Economic Versus Normal Profit

Every Macroeconomic Word You Ever Heard: Gross Domestic Product, Inflation, Unemployment, Recession, Depression

Interest Rates and Present Value

Aggregate Demand and Aggregate Supply

Fiscal Policy

Monetary Policy

Federal Deficits, Surpluses, and the National Debt

The Housing Bubble

The Recession of 2007-2009: Causes and Policy Responses

Is Economic Stagnation the New Normal

Is the Fiscalsky Falling: An Examination of Unfunded Social Security, Medicare, and State and Local Pension Liabilities

International Trade: Does It Jeopardize American Jobs

International Finance and Exchange Rates

The European Debt Crisis

Economic Growth and Development

Nafta, Gatt, Wto: Are Trade Agreements Good for Us

The Line Between Legal and Illegal Goods

Natural Resources, the Environment, and Climate Change

Health Care

Government-Provided Health Insurance: Medicaid, Medicare, and the Child Health Insurance Program

The Economics of Prescription Drugs

So You Want to Be a Lawyer: Economics and the Law

The Economics of Crime

Antitrust

The Economics of Race and Discrimination

Income and Wealth Inequality

Farm Policy

Minimum Wage

Ticket Brokers and Ticket Scalping

Rent Control

Economics of K-12 Education

Economics of College and University Education

Poverty and Welfare

Head Start

Social Security

Personal Income Taxes

Energy Prices

If We Build It, Will They Come and Other Sports Questions

The Stock Market Crashes

Unions

Walmart: Always Low Prices and Low Wages- Always

The Economic Impact of Casino Gambling

The Economics of Terrorism

Filters

Prior to September 11, 2001, defense spending had in inflation adjusted terms over the past 10 years and was at its __ by that measure since WWII.