Question : 16.1   The Federal Budget 1) The federal budget defined as A) a : 1240623

16.1   The Federal Budget

1) The federal budget is defined as

A) a monthly statement of expenditure laws passed by the U.S. government.

B) a monthly statement of whether the U.S. government is in deficit or surplus.

C) an annual statement of U.S. government violations of international laws.

D) an annual statement of expenditures and tax revenues of the U.S. government.

E) an annual statement of what policy actions the U.S. government has pursued.

2) The use of the federal budget to achieve macroeconomic objectives of full employment and sustainable economic growth is

A) called fiscal policy.

B) called monetary policy.

C) done only when there is a budget surplus.

D) called government GDP policy.

E) done only when there is a budget deficit.

3) In the United States for the year 2012, the federal government had a ________ so the national debt was ________.

A) budget deficit; increasing

B) balanced budget; not changing

C) budget surplus; decreasing

D) budget deficit; decreasing

E) budget surplus; increasing

4) The last U.S. president to be in office when the government had a budget surplus was

A) George H. Bush.

B) George W. Bush.

C) Ronald Reagan.

D) Dwight D. Eisenhower.

E) Bill Clinton.

5) If the federal government has a budget surplus, then it is definitely the case that

A) tax revenues exceeds government outlays.

B) tax revenues and government outlays are equal.

C) tax revenues are falling and government outlays are rising.

D) government outlays exceed tax revenues.

E) tax revenues are rising and government outlays are falling.

6) The government has a budget surplus if

A) there is no national debt.

B) tax revenues are greater than outlays.

C) government outlays are greater than tax revenues.

D) the budget is balanced.

E) a fiscal stimulus is being used to combat a recession.

7) When tax revenues exceed the government’s outlays, the budget

A) has a deficit and the national debt is increasing.

B) is balanced and the national debt is decreasing.

C) has a surplus and the national debt is decreasing.

D) has a surplus and the national debt is increasing.

E) None of the above because by law tax revenue cannot exceed the government’s expenditures.

8) When tax revenues ________ outlays is positive, then the government has a budget ________.

A) minus; surplus

B) divided by; surplus

C) minus; deficit

D) plus; deficit

E) plus; surplus

9) When the government’s expenditures exceed its tax revenues, the budget

A) has a deficit and the national debt is increasing.

B) is balanced and the national debt is increasing.

C) has a surplus and the national debt is increasing.

D) has a deficit and the national debt is decreasing.

E) None of the above because by law the government’s expenditures cannot exceed its tax revenue.

10) When government outlays exceed tax revenues, the situation is called a budget

A) with a negative balance.

B) deficit.

C) surplus.

D) debt.

E) with no balance.