Ch.14 Review

Deficit spending occurs when the federal government wants to

• lower the national debt.

• increase surpluses in the budget.

• fund programs without raising taxes

• strengthen local and state governments

Which of these events happens first in the budget cycle?

• Congress adopts a budget resolution.

• Federal bureaucrats prepare budget requests

• Legislators insert earmarks into appropriation bills.

• House and Senate budget committees hold hearings

On which date does the federal fiscal year begin?

• October 1

• April 1

• July 1

• January 1

What is the purpose of a continuing resolution?

• to combine 13 appropriation bills into one budget

• to keep the government working without a budget

• to set guidelines for congressional budget making

• to close congressional debate on appropriation bills

Which of the following is the largest source of federal revenue?

• individual income taxes

• excise taxes

• corporate taxes

• property taxes

What is the largest category of federal discretionary spending?

• defense

• education

• health

• scientific research

Which of these is an entitlement?

• a low-income family's food stamps

• a federally funded highway program

• a manufacturer's government contract

• a federal grant to fund medical research

Which of these taxes is most likely to be regressive?

• sales tax

• estate tax

• corporate income tax

• individual income tax

What happens if the president and Congress cannot reach an agreement on the budget by the deadline of October 1?

• All nonessential government services are shut down until they can reach an agreement.

• The federal government must commit to using the previous year's budget for another year.

• The budget proposal from the Office of Management and Budget goes into effect by default.

• Congress and the president try to agree upon a continuing resolution to keep the government working.

If you were a wealthy taxpayer, which kind of income tax would benefit you the most?

• social insurance tax

• progressive tax

• regressive tax

• excise tax