Budget Process/$
Budget Vocab./Etc.
Where's the Money?
The Laws Behind the Budget
Misc.
100
What is the agency with the most responsibility for creating the federal budget?
What is the Office of Management and Budget.
100
What is the national debt?
What is all money borrowed by the federal government that has not been repaid: all the years' deficits added up.
100
Give an example of uncontrollable spending.
ENTITLEMENTS; Social Security, Medicare, Medicaid; interest on national debt
100
Who has the Constitutionally-given power to appropriate funds?
What is Congress?
100
What is the type of policy that deals with the federal budget?
What is fiscal policy?
200
How much is the United States in debt?
15-16 trillion
200
What is a deficit?
What is when expenditures (money spent) exceeds revenues (money gained).
200
Where does the largest percentage of the federal budget go?
What is entitlement spending/Health and Human Services?
200
Who is the only one that can raise the debt ceiling?
What is the Congress?
200
Which president enacted Social Security?
Who is President Franklin Roosevelt.
300
Who was the last president to have a surplus?
Bill Clinton
300
What is a surplus?
What is when revenues (money gained) exceed expenditures (money spent).
300
Where does the federal government receive most of its funding?
What is from individual income taxes.
300
What two branches are involved with the budget process?
What are the executive and legislative?
300
Name and Explain 2 of the 3 types of tax systems.
REGRESSIVE: tax rate decreases with income; PROGRESSIVE: tax rate increases with income; PROPORTIONAL: everyone pays the same percentage of income
400
What is the Debt ceiling?
How much the government can borrow?
400
What is uncontrollable spending?
What is money that must be spent, i.e. non-discretionary spending.
400
What is controllable spending and give an example.
What is spending that is not necessary or mandatory: housing, education, infrastructure, defense, etc.?
400
What is each branch's responsibility in the creation of the Federal Budget?
EXECUTIVE: the Office of Management and Budget helps prepare budget proposal (and oversees the apportionment process), submitted to Congress by the President; LEGISLATIVE: creates final form of the budget to be passed by both houses of Congress
400
Explain the differences of the basic principles behind demand-side economics (Keynesian) and supply-side economics (Reaganomics).
DEMAND-SIDE: government spending on programs stimulates the economy; high demand + low productivity = inflation, low demand + high productivity = unemployment SUPPLY-SIDE: economy is stimulated through tax breaks and decreased regulation; "trickle-down" theory: allowing the rich to spend more ultimately benefits the poor
500
What is the main difference between balancing the state of Michigan budget and the U.S. Budget?
What is the state must be balanced?
500
What amendment allows a federal income tax?
What is the 16th?
500
Name one type of revenue for the federal government (other than income tax) and give an example.
EXCISE TAX: sin taxes: alcohol, tobacco; gasoline, cell phone, tanning; ESTATE & GIFT TAX: tax on gifts of money exceeding $18,000; tax on estate worth more than $1 million; CUSTOMS, TARIFFS: tax on items brought in from another country, tax on imports; BORROWING: from citizens, other countries
500
What war caused the first deficit in the U.S.?
What is the Revolutionary War?
500
Describe how the federal budget process exemplifies the principle of checks and balances/separation of powers.
The Executive branch is responsible for creating a proposal that is sent to Congress. The president/OMB cannot pass the budget without Congressional approval. Congress relies on the Executive branch to create the proposal for the budget. (neither branch has sole responsibility for creating and implementing the federal budget)
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