Economics Government spending test review – Flashcards
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Distribution of income explains the ways in which income is allocated to individuals, families or other designated groups.
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True
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When the government produces goods and services, it often competes with producers in the private sector.
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True
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Government growth during the Great Depression turned public opinion against further expansion of the government's role in the economy.
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False
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Interstate highway construction programs are the examples of grants-in-aid.
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True
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In 1999 federal, state, and local governments in the United States spent about $100 per capita.
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False
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Approximately two-thirds of the federal budget consists of discretionary spending.
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False
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After formulating a budget, the president sends it to the House of Representatives.
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True
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Payments to aged and disabled Americans through the social security program make up the largest category of federal spending.
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True
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Expenditures for natural resources and the environment constitute the second largest category of federal spending.
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False
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For much of the late 1900s, national defense comprised the largest category of spending.
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True
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The public sector is that part of the economy that is made up of individuals and privately-owned businesses.
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False
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Government spending can directly affect both the allocation of resources and the distribution of income.
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True
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At the present time, Social Security is the federal governments largest category of spending.
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True
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The fastest growing category of federal expenditures since 1980 has been defense.
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False
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Some states have enacted balance budget amendments that prohibit annual spending from exceeding annual revenues
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True
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States spending the largest portion of their revenues on intergovernmental expenditures and public welfare.
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True
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During the 1980s the federal government began to have budget surpluses for the first time since World War II.
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False
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One of the major concerns about the national debt is that more than 50 percent of it is owed, to investors outside of the United States.
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True
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Consequences of the national debt include the redistribution of income and diminishing incentives to work, save and invest.
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True
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One of the major challenges, facing the federal government is the rapid growth of entitlements.
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True
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All levels of government combined consume about
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B.) One-Third of the Nation's Output.
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An Example of Mandatory Spending is Financing for
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A.) Interest payments on the federal debt.
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The Largest category of spending for most local governments is
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A.) Elementary and secondary education
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The United States government accumulated huge deficits during the 1980's due to
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C.) A doubling of spending on national defense.
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The "Pay-As-You-Go" provision was a feature of the
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A.) Budget Enforcement Act
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Transfer payments from the government to individuals or other levels of government might be used for all of the following EXCEPT
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C.) Maintenance of the armed forces.
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The sequence for the approval of the federal budget is
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B.) President To Congress Back to president.
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The largest category of state spending is
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C.) Intergovernmental Expenditures
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The first federal budget surplus in three decades occurred in
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A.) 1998
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Legislation intended to establish a balance budget was the
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B.) Gramm-Rudman-Hollings Bill.
