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Jump Start
Chapter 10 Section 2
1. Government health expenditures include a joint federal-state insurance program
for low-income persons called
a. Medicare
b. OSHA
c. Medicaid
d. Social Security
2. All of the following are examples of discretionary spending EXCEPT:
a. Defense expenditures
b. Coast Guard expenditures
c. Welfare programs
d. Medicare
3. Who formulates (creates) the federal budget?
a. The Senate
b. The House of Representatives
c. The President
d. The congressional Budget Office
4. What role does the Office of Management and Budget (OMB) play in establishing
the federal budget? The OMB
a. Assembles the budget under presidential guidelines
b. Approves the final budget
c. Evaluates the economic impact of proposed congressional actions on the
budget
d. Determines how the money in the budget will be distributed amount the
major categories of spending
5. In addition to the interest rate, what determines how much interest the federal
government spends on the federal debt? How much money it
a. Raises
b. Borrows
c. Spends
d. Invests
Jump Start
Chapter 10 Section 3
6. Of the four categories listed below, which accounts for the largest amount of
LOCAL expenditures?
a. Insurance trust funds
b. Public utilities
c. Highways
d. Higher education
7. All of the following are local officials with approval power for spending
EXCEPT:
a. The mayor
b. The council
c. The judge
d. The tax assessor
8. Which of the following is NOT an example of local government?
a. School districts
b. Municipalities
c. Neighborhood associations
d. Counties
9. Who pays for the maintenance on the state highway linking Tyler, Texas, with
Corsicana, Texas?
a. Tyler
b. Texas
c. Corsicana
d. The federal government
10. Of the four categories listed below, which accounts for the largest amount of
STATE expenditures?
a. Police protection
b. Public utilities
c. Elementary and Secondary education
d. Higher education
Jump Start
Chapter 10 Section 4
11. From the choices below, identify when the federal government began significant
deficit spending:
a. 1960s
b. 1970s
c. 1980s
d. 1990s
12. Which of the following statements best describes the relationship of the federal
deficit to the federal debt?
a. The federal deficit is another term for the federal debt
b. The federal deficit leads to borrowing, which adds to the federal debt
c. The federal debt leads to borrowing, which adds to the federal deficit
d. The federal debt is the opposite of the federal deficit
13. Which of the following is an example of an entitlement program?
a. Federal money given to a contractor in exchange for military uniforms
b. Federal money given to a senior citizen as a Social Security payment
c. Federal money spent to pay interest on the federal debt
d. Federal money spent to build a new public highway
14. All of the following are differences between the federal debt and private debt
EXCEPT:
a. The federal debt is owed to ourselves, rather than others
b. The federal government foes not have to repay the debt by a specific date
c. The federal debt is the total amount of money borrowed from investors
d. The federal government does not lose purchasing power
15. All of the following are effects of the federal debt EXCEPT
a. Income distribution is altered
b. Purchasing power is transferred
c. Incentives to work, save, and invest decrease
d. Interest rates are lowered