American Public Policy Promise and Performance 10th Edition Peters Test Bank

American Public Policy Promise and
Performance 10th Edition Peters Test

Bank
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Chapter 7 Test Bank
Title: Ch07-01
1. What is the budget process?
*a. Varies. The budget process provides the means of allocating the available resources among
competing purposes. It is an attempt to allocate available money for the greatest social, economic and
political benefit.
Cognitive Domain: Comprehension
Answer Location: pages 138-139
Question Type: SA
Title: Ch07-02
2. Which of the following terms best describes the process by which government allocates resources
among competing purposes to provide the greatest social, economic, and political benefit?
a. rescission process
b. impoundment process
c. backward mapping
*d. budget process
Answer Location: page 138
Question Type: MC
Title: Ch07-03
3. CHOOSE ALL THAT APPLY. What are the primary questions of budgeting?
a. deciding reasonable debt reductions in light of public needs
*b. system-level allocation between the public and private sector; which activities justify government
intervention
*c. how available resources should be allocated
d. constitutional question of whether Congress should more aggressively reassert control over the budget
process
Cognitive Domain: Application
Question Type: MS
Title: Ch07-04
4. Which is NOT one of the constraints decision makers face in the budget process?
a. commitments to fund existing entitlement programs
b. that decisions are based on the assumption that no more revenue will come in
*c. that money can be divided almost infinitely
d. the number of activities or problems that justify government intervention
Question Type: MC
Title: Ch07-05
5. The federal budget is a(n) _____ budget, prepared by the president and his staff, approved by
Congress and then executed by the president and his cabinet.
*a. executive
Cognitive Domain: Knowledge

Question Type: FIB
Title: Ch07-06
6. Budgetary power has accumulated primarily in which executive branch agency?
a. Government Accountability Office
b. Budget and Impoundment Control Office
*c. Office of Management and Budget
d. Council of Economic Advisers
Question Type: MC
Title: Ch07-07
7. The shift in dominance of the federal budget from the legislative branch to the executive branch
occurred in _____ because of the _____.
*a. 1921 . . . Budget and Accounting Act of 1921
Question Type: FIB
Title: Ch07-08;SA
8. Identify at least two characteristics of the federal budget.
*a. Varies. Three characteristics follow, any of which could be part of a correct answer to this question:
the federal budget is an executive budget, a line-item budget, and an annual budget.
Question Type: MC
Title: Ch07-09
9. Congress plays which role in the budget process?
a. It initiates the budget, which it then sends to the president.
b. It plays an equal role to that of the executive branch in developing the budget.
*c. It responds to budgetary initiatives from the White House.
d. It works primarily to settle disputes between the president’s version of the budget and its own.
Question Type: MC
Title: Ch07-10
10. The federal budget allocates funds into categories. This type of budget is described by which term?
a. agency-allocation budget
b. input-controlled budget
c. item-specific budget
*d. line-item budget
Question Type: MC
Title: Ch07-11
11. The rigidities of the line-item budget may inhibit the effectiveness of good government managers by
limiting how they can spend the money allocated to the agency.
*a. true
b. false
Answer Location: pages 140
Question Type: TF
Title: Ch07-12
12. Through which act did Congress attempt to overlay the fundamental line-item structure of the budget
with a more performance-based system of assessment and allocation?
a. Budget and Accounting Act
b. Congressional Budget Act
c. Congressional Budget and Impoundment Control Act
*d. Government Performance and Results Act
Question Type: MC
Title: Ch07-13
13. The excesses of the Johnson and Nixon administrations led to the creation of which agency?
*a. the Congressional Budget Office (CBO)
b. the Council of Economic Advisors (CEA)
c. the General Accounting Office (GAO)
d. the Office of Management and Budget (OMB)
Question Type: MC
Title: Ch07-14;F
14. Agencies must submit which forecast for agency expenditure plans?
a. a two-year forecast
*b. a five-year forecast
c. an eight-year forecast
d. a ten-year forecast
Question Type: MC
Title: Ch07-15
15. The Gore commission (the National Performance Review) recommended a _____ budget.
a. semi-annual
*b. biennial
c. tri-annual
d. four-year
Question Type: MC
Title: Ch07-16
16. Describe the reform to the budget cycle proposed by the Gore commission (the National
Performance Review), and explain why Congress does not appear to favor that reform.
a. One of the several recommendations of the Gore commission (the National Performance Review) was
to move the federal government toward a biennial budget to enable organizations to plan more
effectively and deliver services more efficiently. Such a reform might also allow Congress to reduce the
amount of time that it must devote to the budget process, freeing it to spend more time performing its
other legislative duties. However, Congress does not appear to favor this reform, largely because it
might lessen congressional control over the executive branch.
Question Type: SA
Title: Ch07-17
17. Congress favored the reforms that the Gore commission recommended to move the federal
government toward a biennial budget, to enable organizations to plan more effectively and deliver
services more efficiently.
a. true
*b. false
Question Type: TF
Title: Ch07-18
18. What is the spring review?
*a. Varies. The spring review is the first official act of the budget cycle in which estimates are prepared
of the total size of the federal budget in the fiscal year.
Question Type: SA
Title: Ch07-19
19. The budget for fiscal year 2015 went into effect _____.
a. January 2014
*b. October 2014
c. January 2015
d. October 205
Question Type: MC
Title: Ch07-20
20. CHOOSE ALL THAT APPLY. Which organizations are part of the “troika” that prepares economic
and expenditure estimates for the budget that the president presents to Congress?
*a. the Council of Economic Advisors (CEA)
*b. the Department of the Treasury
c. the Government Accountability Office (GAO)
*d. the Office of Management and Budget (OMB)
Question Type: MS
Title: Ch07-21
21. Identify the three organizations in the “troika” that prepares economic and expenditure estimates.
List the function of each.
*a. Varies. The Council of Economic Advisors (CEA) is largely technical, forecasting the state of the
economy and advising the president based on these forecast. The Department of the Treasury represents
the financial community, often advocating for balanced budgets. The Office of Management and Budget
(OMB) acts as a representative of the expenditure community since they are familiar with agency
requests.
Question Type: SA
Title: Ch07-22
22. The role of which organization is largely technical, forecasting the state of the economy and advising
the president on the basis of the forecasts it prepares?
*a. the Council of Economic Advisors (CEA)
b. the Department of the Treasury
c. National Economic Council (NEC)
Question Type: MC
Title: Ch07-23
23. Identify the organization that has historically been a major advocate of a balanced budget, and
explain why.
a. the Department of the Treasury, because it must cover any debts created by a budget deficit by issuing
government bonds
Question Type: SA
Title: Ch07-24
24. In the budget process, which organization’s principal interest is to preserve the confidence of the
financial community at home and abroad in the soundness of the U.S. economy and the government’s
management of the economy?
*a. the Department of the Treasury
b. the Federal Reserve
c. the Export-Import Bank of the United States
d. the International Monetary Fund
Question Type: MC
Title: Ch07-25
25. What agency, that has not traditionally been a part of the troika, has begun to play a vital role in the
budget process helping to integrate monetary and fiscal policy?
a. Congressional Budget Office
b. International Monetary Fund
*c. Federal Reserve Board
d. Council of Economic Advisers
Question Type: MC
Title: Ch07-26
26. Which is the greatest constraint on agency action when it considers strategies to secure expanded
funding?
a. The budget forecast is a ten-year forecast.
*b. The budget process operates on an annual cycle.
c. lack of coordination
d. presidential priorities
Question Type: MC
Title: Ch07-27
27. CHOOSE ALL THAT APPLY. What are strategies that agencies must apply when submitting
budget requests to the OMB.
a. plan for eventual rescissions made by the president
*b. pursue aggressive but reasonable plans
*c. use tools with long-term goals in mind
*d. recognize responsibilities to the president
Question Type: MS
Title: Ch07-28
28. Which occurs after the Office of Management and Budget receives each of the agencies’ budget
estimates?
*a. OMB passes the estimates to its budget examiners for review.
b. OMB holds hearings regarding the estimates before finalizing the budget.
c. The OMB director conducts a review.
d. OMB hears final agency appeals.
Question Type: MC
Title: Ch07-29
29. The presidential budget is prepared for delivery to Congress within _____ days after Congress
convenes in January each year.
*a. 15
b. 30
c. 50
d. 100
Question Type: MC
Title: Ch07-30
30. Identify two reasons that OMB staff often does not make excessive budget cuts to agency requests.
*a. Varies. 1) an agency can go around OMB and appeal directly to the OMB director, the president or
Congress, 2) OMB budget examiners may favor the agencies and become advocates of their requests
Question Type: SA
Title: Ch07-31
31. Which represents a budget that includes “proposed budget authority and estimated outlays that
would be included in the budget for the ensuing fiscal year . . . if all programs and activities were carried
on at the same level as the fiscal year in progress”?
a. constant-services budgeting
b. current services budgeting
c. estimated expenditure budgeting
*d. volume budgeting
Question Type: MC
Title: Ch07-32
32. The Constitution specifically grants _____ the powers of the purse.
*a. Congress
b. the Federal Reserve Bank
c. the Office of Management and Budget
d. the president
Question Type: MC
Title: Ch7-33
33. Primary responsibility for all aspects of the budget rest with Congress, as stipulated by the “power of
the purse” authority in the Constitution.
a. true
*b. false
Question Type: TF
Title: Ch07-34
34. Decisions on how to allocate total spending among agencies and programs are made by _____.
*a. the appropriations committees in the House and the Senate
b. the budget committees in the House and the Senate
c. the finance committees in the House and the Senate
d. the joint (House and Senate) committee on the economy
Question Type: MC
Title: Ch07-35
35. CHOOSE ALL THAT APPLY. Which of the following are congressional actions taken during the
budget process?
*a. agencies to testify at hearings regarding budget request
b. development of the estimate of the total size of the federal budget
c. issuing an appropriations warrant
*d. passage of a reconciliation bill
Question Type: MS
Title: Ch07-36
36. CHOOSE ALL THAT APPLY. In addition to the budget bill, the Congressional Budget Act
requires that Congress pass a second concurrent resolution addressing which of the following issues?
a. rescissions
* budget ceiling
*c. fiscal policy
*d. revenue floors
Question Type: MS
Title: Ch07-37
37. Appropriations warrants are drawn by the _____ and countersigned by the _____.
*a. Department of the Treasury . . . Government Accountability Office
Question Type: FIB
Title: Ch07-38
38. Describe an impoundment, and explain why a president would impound funds.
*a. Varies. Impoundment is the refusal to spend allocated funds. Impoundment is an indirect means of
overruling Congress when the president is not able to do so through the normal legislative process.
Question Type: SA
Title: Ch07-39
39. Before the 1974 Congressional Budget and Impoundment Control Act, the president was able to use
_____ as an indirect means of overruling Congress when he was not able to do so through the normal
legislative process.
*a. impoundment
Question Type: FIB
Title: Ch07-40
40. Which is characterized by the president’s cancellations of budgetary authority to spend money?
a. committal
b. deferral
*c. rescission
d. suspension
Question Type: MC
Title: Ch07-41
41. Which organization is responsible for a post-expenditure audit of federal spending that occurs after
the executive branch spends the money that Congress has appropriated?
a. the Congressional Budget Office (CBO)
b. the Department of the Treasury
*c. the Government Accountability Office (GAO)
Question Type: MC
Title: Ch07-42
42. Identify and describe the step of the budget process.
*a. Varies. The spring review is the first step in the budget process. OMB develops estimates of the
total size of the federal budget for the fiscal year being developed. Via OMB, letters are sent from the
president to federal agencies stating presidential budget strategy and requesting agency budget
preparation. Agencies prepare budget strategy and submit requests to OMB. OMB then passes the
budgets onto its budget reviewers for an examination of agency requests. OMB then holds budget
hearings at which agencies justify budget requests. Results of hearings are compiled and given to the
director of OMB. Final revisions are made and then OMB submits the budget to the president for final
review. Often final appeals are made to the president at this point. Once approved by the president, the
budget is prepared for delivery to Congress. Budgets are submitted to Congress within fifteen day after
it convenes in January. Congress send the budget to the appropriations committee in each house.
Subcommittees complete most of the work of budget review and preparation. Appropriations bills are
developed and agencies are called to congressional hearings to testify on budget request. After the
hearings, committees will “mark up” the bills. Once complete, bills are submitted for committee and
then full chamber votes. Once the bills are passed in each house, a reconciliation bill is passed to
resolve any difference in the House and Senate bills. Both houses vote on the reconciliation bill.
Congress tries to complete this work by September 15 in order for the budget to be ready on October 1.
Reconciliation bills must be passes by September 25. Once passed by Congress, the budget is submitted
to the president for signing. After a budget bill is passed by Congress and signed by the president, the
Department of the Treasury (countersigned by the GAO) issues an appropriations warrants to agencies.
The agencies then submit a plan for apportionment of the funds to OMB. Typically agencies receive
appropriations on a quarterly basis. Once money is spent the GAO conduct post-expenditure to ensure
that money was spent legally and properly.
Answer Location: pages142-150
Question Type: ESS
Title: Ch07-43
43. The budget deficit calculations for a given year include surpluses and deficits in the Social Security
Trust Fund.
*a. true
b. false
Question Type: TF
Title: Ch07-44
44. All state governments in the United States must balance their budget according to state constitutions.
a. true
*b. false
Question Type: TF
Title: Ch07-45
45. The federal budget separates capital and current expenditures.
a. true
*b. false
Question Type: TF
Title: Ch07-46
46. Much of the federal budget is uncontrollable in any one year.
*a. true
b. false
Question Type: TF
Title: Ch07-47
47. CHOOSE ALL THAT APPLY. Which of the following are largely uncontrollable expenditures.
*a. Social Security
b. defense
*c. Medicare
*d. unemployment benefits
Question Type: MS
Title: Ch07-48
48. Agencies are permitted to spend money not allocated by Congress.
*a. true
b. false
Question Type: TF
Title: Ch07-49
49. Agencies may enter into contracts that bind the federal government to pay a certain amount for
specified goods and services without going through the appropriations process.
*a. true
b. false
Question Type: TF
Title: Ch07-50
50. Through which type of “backdoor” spending are agencies allowed to spend public money not
appropriated by Congress?
*a. borrowing authority
b. contract appropriation
c. semi-permanent appropriations
d. supplemental appropriations
Question Type: MC
Title: Ch07-51
51. Linked to the problem of uncontrollable budgetary expenditures is the concept of “backdoor”
spending. Identify and describe the internal conflict that results from backdoor spending. Additionally,
identify the three principal types of backdoor spending, provide an example of each, and describe how
this type of spending impairs the ability of the federal government to control expenditures.
a. Backdoor spending reflects spending decisions that are not made through the formal appropriations
process. As to internal institutional conflict, students can identify either that these types of spending
decisions reflect a conflict within Congress between substantive policy committees and appropriations
committees, or identify that these spending decisions reflect the difficulties present when making the
huge number of spending decisions that must be made each year through formal channels. The three
principal types of backdoor spending are (1) borrowing authority, (2) contract authority, and (3)
permanent appropriations. Borrowing authority connotes that an agency may borrow from Treasury
money not appropriated to it through the formal appropriations process; examples include student loan
guarantees and federal insurance programs. Borrowing authority impairs the ability of the government to
control expenditures because the authority to make spending decisions is so widely diffused. Where
applicable, contract authority allows agencies to enter into contracts that bind the government; examples
include contracts for specified goods and services. Contract authority impairs the ability of the
government to control expenditures because after the initial contract is let, the appropriations committee
is placed in the awkward position of either appropriating the money to pay the obligation or forcing the
agency to renege on its debts. Permanent appropriations are appropriations that require agencies to
spend money for designated purposes regardless of other conditions; examples include payment of
interest on the public debt or federal support of land grant colleges. Permanent appropriations reduce the
discretion of the appropriations committee unless the committee chooses to renege on these standing
commitments.
Cognitive Domain: Analytical
Question Type: ESS
Title: Ch07-52
52. Money that Congress appropriates each fiscal year needs to be spent during that fiscal year.
a. true
*b. false
Question Type: TF
Title: Ch07-53
53. As of 2008, the federal government spent a liitle over _____ of the total amount of money spent by
governments in the United States.
a. 1/3
*b. 1/2
c. 2/3
d. 4/5
Question Type: MC
Title: Ch07-54
54. Define and compare reprogramming and transfers. Identify which is the more serious budgetary
action and explain why.
*a. Varies. Reprogramming refers to the shifting of funds within a specific appropriations account.
Transfers involve transferring funds from one appropriations account to another. Transfers are the more
serious budgetary action because money is taken from one account to supplement or add to another,
whereas reprogramming only involves shifting money within a single appropriations account.
Question Type: SA
Title: Ch07-55
55. Describe two ways in which budgeting for national defense is different than budgeting for most
other programs. Describe why this is of concern.
*a. Varies. Much of the defense budget is secret. Due to fears of revealing secrets to potential enemies, a
part of the defense budget is not subject to the normal controls of Congress. Many military operations
are budgeted through emergency supplemental budgets and not the normal defense budget. The
supplemental appropriations mechanism does not provide as much scrutiny from Congress.
Question Type: TF
Title: Ch 07-56
56. CHOOSE ALL THAT APPLY. Which of the following are ways in which defense budgeting is
different from most other areas of budgeting?
*a. Department of Defense has SOPs for reprogramming budget items.
b. the defense budget is not subject to cuts as a result of sequestration
*c. portion of military operations are budgeted through emergency supplemental appropriations
*d. some elements of the budget are secret
Question Type: MS
Title: Ch 07-57
57. _____________________ are budget allocations made outside the normal budget cycle to cover
shortfalls during the fiscal year.
*a. Supplemental appropriations
Question Type: FIB
Title: Ch07-58
58. Supplemental appropriations are not scrutinized as carefully as regular appropriations.
*a. true
b. false
Question Type: TF
Title: Ch07-59
59. What is a tool used by members of Congress to add special benefits for their constituency after the
budget bill has passed through the appropriations committee?
a. permanent appropriation
*b. earmark
c. transfer
d. supplemental appropriation
Question Type: MC
Title: Ch07-60
60. Want is the overhang? Why is it a concern? Identify and describe four limitations on the ability to
control the budget process as they directly related to the concept of the overhang.
*a. Varies. The money that Congress appropriates for a fiscal year but is not spent during that year is
part of the overhang. The money need not be spent during the fiscal year, but it must be obligated.
Having to address an overhang from previous budget years reduces the amount of funds available for
spending during the current fiscal year. The overhang makes it difficult for a president to use the budget
as an instrument of economic management. The president and Congress cannot always control the
outlay of funds. Agencies may have sufficient budget authority, through this ability to obligate money,
to damage presidential forecasts of spending. Students can discuss four of the following as budget
control problems: intergovernmental budget control, reprogramming and transfers, the defense budget,
supplemental appropriations, earmarks.
Answer Location: page 157-161
Question Type: ESS
Title: Ch07-61
61. ____________________ means that the changes in an agency’s budget from year to year tend to be
predictable; usually marginal changes from the status quo.
*a. Incrementalism
Question Type: FIB
Title: C07-62
62. Define “successive limited comparisons”.
*a. Varies. In the context of incremental budgeting, successive limited comparison refers to the
sequential examination of marginal changes from the budget status quo and decisions about whether to
make marginal adjustments to current policies.
Question Type: SA
Title: Ch07-63
63. CHOOSE ALL THAT APPLY. Which factors contribute to the process of incremental budgeting in
the United States?
*a. Incremental budgeting helps to minimize bargaining costs among institutions.
*b. A large percentage of the budget is uncontrollable from year to year.
*c. The budget process is repetitive and sequential in nature.
d. The status quo is perpetuated through incremental budgeting.
Question Type: MC
Title: Ch07-64;F; “Problems in the Budget Process”

64. Approximately _____ percent of total federal expenditures in 2006 were uncontrollable expenses.
a. 10
b. 25
c. 50
*d. 70
Question Type: MC
Title: Ch07-65
65. Want is meant by the term incremental budgeting? What are the advantages and disadvantages of
incremental budgeting?
*a. Varies. Incrementalism means that the changes in an agency’s budget from year to year tend to be
predictable. It involves the sequential examination of marginal changes from the status quo and
decisions about whether to make those marginal adjustments to current policies. It is a process built on
earlier decisions, seeking to improve the situation rather than altering current policies or budget
priorities completely. Supporters argue that it is a rational method because it provides an experiential
base from which to work. Errors can be more easily reversed since changes are small. Also, it is cost-
minimizing by limiting the range of alternatives and limiting research necessary. Further, it reduces the
cost a change – and possibly costs of correcting errors. Further, changes in the budget are small and
predictable, thus, providing budget stability. Critics argue that incrementalism is too conservative,
perpetuating the status quo long after better solutions are available. There is no mechanism for using a
non-incremental approach when one is needed. It is hard to identify what a “big” change would be and
when it would be appropriate. Though agencies may experience incremental change, managers of
agencies can drastically alter priorities within the agency and produce rapid change. When the
uncontrollable elements of the budget are removed from the analysis, find that the controllable portion
of the budget is subject to major change. Incrementalism may not apply to new agencies or more
marginal programs Finally, while the reversibility of error is seen as a major benefit, it the real world,
this rarely happens. Once a commitment is made ot a client or a benefit is indexed, it is difficult for
government to take it away.
Question Type: ESS
Title: Ch07-66
66. _____________________ is a systems concept of budgeting that looks for interactions among
policy areas and for means of producing desired effects in the most efficient manner; allocates funds
based on the activities of government and services provided.
*a. Program budgeting
Question Type: FIB
Title: Ch07-67
54. Explain how program budgeting is different than traditional budgeting.
*a. Varies. Program budgeting allocates resources on the basis of the activities of government and the
services that government supplies to society. It also places a pronounced emphasis on the analysis of
programmatic expenditures and the most efficient use of scarce resources.
Question Type: SA
Title: Ch07-68
68. CHOOSE ALL THAT APPLY. Which are elements of the six basic characteristics of the planning,
programming, budgeting system (PPBS)?
*a. Alternative structures for budgeting are systematically analyzed to assess efficiency.
*b. The major goals and objectives of the government are to be identified.
c. Organizations are sacrosanct in program budgeting.
d. Strict time limits on line-item budgeting are aimed at identifying the medium and long-term
implications of programs.
Question Type: MS
Title: Ch07-69
69. What are the six characteristics of the planning, programming, budgeting system (PPBS)?
*a. 1) major goals and objectives of government must be identified, 2) programs must be developed
according to specified goals, 3) resources must be allocated among program, 4) organizations are not
sacrosanct, 5) program budgeting extends the time limit beyond a single year, 6) alternative programs
are systematically analyzed
Question Type: SA
Title: Ch07-70
70. Identify criticisms of program budgeting.
a. Technically, applying PPBS successfully required a great deal of time and effort, as well as an almost
certain knowledge of unknown relationships of spending to program success. The systems concept
inherent in the method implies that if one aspect of the system is altered, the entire system must be
rethought. That may mean that program budgeting actually institutionalizes the rigidity that it was
designed to eliminate. Also, it is difficult if not impossible to define programs, measure their results, and
evaluate the contributions of individual agencies and activities to the achievement of those results. The
difficulty of measuring the effects of government is one of the major problems in public policy analysis,
and such measurement occupies a central place in program budgeting. Program budgeting also had
several political disadvantages. The program budgeting method forced decisions to a higher level of
government. Agencies disliked this centralizing tendency, as did Congress members who had invested
considerable effort in developing relationships with clientele groups supporting agencies. Moreover, the
assumption that organizations are not the most appropriate objects of allocation ran counter to all the
folkways of American government. Finally, the need to analyze systematically alternative strategies for
achieving ends forced agencies to expose their programs to possible attack, as they might develop and
eliminate alternative programs that others might prefer, and the explicit nature of the process brought
those alternatives up for active consideration.
Question Type: ESS
Title: Ch07-71;F; “Reforming Budgeting”

71. The _____ is an addition to the Government Performance and Results Act that evaluates government
programs emphasizing the management of the program rather than the services provided to clients.
*a. program assessment rating tool
Question Type: FIB
Title: Ch07-72
72. While traditional incremental budgeting operates from the assumption that the previous year’s
budget was justified, and so increments are all that need examination, zero-base budgeting holds that a
more comprehensive examination of all expenditures should be conducted.
*a. true
b. false
Question Type: TF
Title: Ch07-73
73. What type of budgeting promotes a comprehensive examination of all expenditures each budget
cycle, arguing that there should be no “base” budget for any organization and all spending plans should
be fully justified?
a. incremental budgeting
b. program-base budgeting
c. supplemental-base budgeting
*d. zero-base budgeting
Question Type: MC
Title: Ch07-74
74. Identify an advantage of zero-base budgeting (ZBB).
a. Advantages include the following: ZBB focuses on cost-effectiveness in justifying the ranking of
decision packages; the involvement of managers at relatively low levels of the organization in the
consideration of its goals and priorities; and allocation of resources considered in package terms.
Question Type: SA
Title: Ch07-75
75. Under Gramm-Rudman-Hollings, if the president and Congress could not reach an agreement on
raising taxes or cutting spending to reduce the deficit, sequestrations in spending, taking half from the
defense budget and half from the domestic budget, are imposed.
*a. true
b. false
Question Type: TF
Title: Ch07-76
76. Explain why the original Gramm-Rudman-Hollings Act was ruled unconstitutional by the Supreme
Court, and describe how the new Gramm-Rudman-Hollings Act avoided that constitutional problem.
*a. Varies. Originally, when the president and Congress disagreed about budget cuts, the General
Accounting Office was to act in determining budget cuts. However, the Supreme Court ruled that the
GAO, a legislative organization, could not perform the executive act of ordering budget cuts for specific
executive agencies. The scorekeeper role was subsequently reassigned to the Office of Management and
Budget, in the Executive Office of the President.
Question Type: SA
Title: Ch07-77
77. Identify the elements of the Budget Enforcement Act of 1990 (BEA), and explain why these
provisions are significant to the budgetary process.
*a. Varies Student answers could include any of the following six elements/provisions: (1) separation of
mandatory pending from discretionary spending; (2) differentiation of three types of discretionary
spending—defense, international, and domestic—with separate spending targets for each; (3) a “pay-as-
you-go” plan for mandatory spending and revenues, so that any increase in spending or reduction in
revenue required an associated spending reduction or tax increase, to keep the package deficit neutral;
(4) elimination of overoptimistic or unrealistic targets for deficit reduction; (5) inclusion of loan
programs in the budget calculations; and (6) the OMB as scorekeeper. These provisions are generally
significant to the budget process because they provide for deficit reduction (or at least management).
Question Type: ESS
Title: Ch07-78
78. Some state governors have the power to veto portions of bills with a line-item veto.
*a. true
b. false
Question Type: TF
Title: Ch07-79
79. The Budget Control Act of 2011 contained two key instruments for attacking the deficit. Identify
these two instruments and explain how they are expected to lead to budget reductions.
*a. Varies. The first instrument was the “Super Committee”—the Joint Select Committee on Deficit
Reduction. This committee was composed of equal numbers of Democrats and Republicans, and was
meant to reduce the deficit by $2 trillion to match the projected amount of borrowing needed. The
second instrument was the automatic sequestration of funds if Congress and the president were
incapable of reducing the deficit. In this plan, if the target figure was not reached, the amount needed
would be automatically taken from spending, half from defense and half from domestic discretionary
expenditures.
Question Type: SA
Title: Ch07-80
80. To give the president the ability to defund specific programs from spending legislation, recent
presidents have pushed for this constitutional “line-item veto.”
a. a balanced budget constitutional amendment
b. enhanced committal authority
c. program assessment rating tool
*d. enhanced rescission authority
Question Type: MC

American Public Policy Promise and Performance 10th Edition Peters Test Bank

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American Public Policy Promise and Performance 10th Edition Peters Test Bank

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American Public Policy Promise and

Performance 10th Edition Peters Test

Cognitive Domain: Knowledge

Title: Ch07-64;F; “Problems in the Budget Process”

Title: Ch07-71;F; “Reforming Budgeting”

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