Question

1. Government spending required by laws other than appropriation acts is also known as what?
	a. Budget spending
	b. Mandatory spending
	c. Discretionary spending
	d. Deficit spending

2. Which of the following statements is true?
	a. Mandatory spending is determined by law and discretionary spending is determined by appropriation acts.
	b. Discretionary spending is determined by the president with advice from Congress, and mandatory spending is determined by the Supreme Court.
	c. Neither mandatory nor discretionary spending can be changed.
	d. Discretionary spending can change only if the law is changed.

3. Income received by government from taxes and other nontax sources is known as what?
	a. Expenditure
	b. Collections
	c. Budget
	d. Debt

4. Which of the following statements is most likely?
	a. Representatives do not have to consider the long- and short-term effects of budget decisions.
	b. Representatives consider the long- and short-term effects of budget decisions.
	c. Representatives consider only the long-term effects of budget decisions.
	d. Representatives consider only the short-term effects of budget decisions.

5. An itemized summary of projected income and expenses for a given period is known as what?
	a. Revenue
	b. Constituent
	c. Budget
	d. Function

6. Which term describes a situation where government collections exceed government spending for a given period, usually a fiscal year?
	a. Budget surplus
	b. Budget deficit
	c. National debt
	d. Balanced budget

7. What is the money spent to buy goods and services or to make transfer payments also known as?
	a. Expenditure
	b. Budget
	c. Debt
	d. Allowance

8. Government spending authorized annually through an appropriations act is also known as what?
	a. Discretionary spending
	b. Mandatory spending
	c. Budget spending
	d. Collections spending

9. Utopia has a national debt. If they have a budget deficit this year, and continue to operate with budget deficits year after year, what will happen to their national debt?
	a. Their national debt will decrease.
	b. Their national debt will increase.
	c. Their national debt will remain the same.
	d. They will now have a budget surplus.

10. Which of the following is an example of a transfer payment?
	a. Interstate highway construction
	b. Medicare spending
	c. Defense spending
	d. National park spending

11. Which term describes a situation where government spending equals government collections for a given period, usually a fiscal year?
	a. Budget deficit
	b. Budget surplus
	c. National debt
	d. Balanced budget

12. What is the legal authority for a federal agency to spend money for specified purposes?
	a. Appropriations
	b. Budgets
	c. Revenue
	d. Constituents

13. What results from an accumulation of budget deficits?
	a. National debt
	b. National surplus
	c. Discretionary spending
	d. Mandatory spending

14. Which of the following is generally involved in the federal budget-making process?
	a. Congress, The Federal Reserve, and the Supreme Court
	b. Congress, the President, and the National Bureau of Economic Research
	c. Congress, The Federal Reserve, and Federal Agencies
	d. Congress, the President, and Federal Agencies

15. Payments by governments to people who do not supply goods, services, or labor in exchange for the payments are referred to as what?
	a. Remittances
	b. Securities payments
	c. Transfer payments
	d. Debt payments

16. If Congress reduced government expenditures and increased collections, which of the following would most likely result?
	a. The budget would move toward deficit.
	b. The budget would move toward balance (if in deficit) or develop a surplus.
	c. The budget would not change.
	d. The budget would move toward deficit, but national debt would decrease.

17. Which describes a situation where government spending exceeds government collections for a given period, usually a fiscal year.
	a. Budget surplus
	b. Budget deficit
	c. National debt
	d. Balanced budget

Answer 1

1. Option B

Explanation: Mandatory spending are mandated by the law.

2. Option A

Explanation: Discretionary spending stems from appropriation acts and mandatory spending comes from laws.

3. Option C

Explanation: The government collection shows the total income of the government from different sources.

4. Option D

Explanation: In the long-term, representatives do not remain in power.