Multiple Choice Quiz


1	Federal Spending as a percentage of gross domestic product has ranged between _______ since 1951
		A)	2% and 5%
		B)	6% and 12%
		C)	16% and 22%
		D)	27% and 33%


2	The U.S. Constitution mandates that
		A)	tax bills originate in the House of Representatives.
		B)	tax bills must have a Presidential signature (overridden vetoes are not allowed).
		C)	spending bills must originate in the Senate.
		D)	any new spending be offset by other cuts or tax increases.


3	The U.S. Constitution mandates that
		A)	tax and spending provisions be passed by both the Senate and the House.
		B)	tax bills must have a Presidential signature (overridden vetoes are not allowed).
		C)	spending bills must originate in the Senate.
		D)	tax and spending provisions are allowed with the approval of only one Congressional body as long as the President signs.


4	Which of the following is not taken to the President for a signature or veto
		A)	an appropriations bill
		B)	a tax bill
		C)	a budget bill
		D)	a spending provision


5	If Congress cannot pass an appropriations bill that the President will sign then the part of the government affected
		A)	must close regardless of its mission (e.g. prisoners would be set free).
		B)	may be temporarily kept open as part of a continuing resolution.
		C)	must close unless it falls under the "emergency" label.
		D)	b) and c)


6	Spending and tax provisions that goes before a conference committee
		A)	must have passed both the House and Senate.
		B)	must have passed at least the House.
		C)	must have passed either the House or Senate.
		D)	can be provisions never introduced in either the House or Senate.


7	If the government spends money (either by taxing or borrowing) and this lessens what is available to the private sector then economists call this
		A)	shoving aside.
		B)	leaking.
		C)	spilling waste.
		D)	crowding out.


8	The vast majority of money spent in a year is not subject to annual appropriation this spending is called
		A)	required.
		B)	discretionary.
		C)	mandatory.
		D)	illusionary.


9	In fiscal year 2000 the federal government spent
		A)	more on defense than other discretionary priorities.
		B)	more on Social Security than on any other program.
		C)	more on foreign aid than on welfare and Medicaid combined.
		D)	less than it had in 1990.


10	Using marginal analysis which is true about the optimal amount of total spending
		A)	It is where you get $X trillion worth of good for the $X trillion spent.
		B)	It is where you get $1 worth of good from the last $1 spent.
		C)	It is where you get $X trillion worth of good for the last $1 spent.
		D)	It is where you get $1 worth of good for the $X trillion dollars spent.

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