MPA Public Budgeting and Finance 3

Question 1

Which budgeting format directly links funding levels to measurable outcomes and results?

Accepted Answer

Performance budgeting

Answer

Line-item budgeting

Answer

Lump-sum budgeting

Answer

Incremental budgeting

Question 2

In public budgeting, what is 'earmarking'?

Accepted Answer

Setting aside funds in a trust fund for a designated purpose by law

Answer

Identifying line items for cuts during a budget crisis

Answer

Labeling agency priorities in the executive budget proposal

Answer

Reserving surplus funds for future emergencies

Question 3

What does 'impoundment' mean in U.S. federal budget terminology?

Accepted Answer

The executive branch's refusal to spend funds appropriated by Congress

Answer

Congress blocking the president's budget request

Answer

A court order freezing government spending

Answer

An automatic sequester triggered by deficit thresholds

Question 4

Which term describes the practice of legislators inserting specific local projects into federal appropriations bills?

Accepted Answer

Pork barrel spending / earmarks

Answer

General revenue sharing

Answer

Block grants

Answer

Formula grants

Question 5

The Gramm-Rudman-Hollings Act of 1985 was significant in U.S. budget history because it:

Accepted Answer

Set mandatory deficit reduction targets with automatic spending cuts (sequestration) if targets were missed

Answer

Established the Congressional Budget Office

Answer

Created the modern federal income tax system

Answer

Authorized the first federal debt ceiling

Question 6

What is 'capital budgeting' in public administration?

Accepted Answer

A separate budget process for long-lived infrastructure and capital asset investments

Answer

Budgeting for recurring daily operating expenses

Answer

The federal government's annual appropriations process

Answer

Setting aside reserves for pension liabilities