Multiple Choice Quiz


1	The federal government's budget deficit and surplus figures are
		A)	functions of annual revenues and expenditures.
		B)	functions of accumulated historical revenues and expenditures.
		C)	the amount the government owes to the public.
		D)	always zero because the government can only spend what it has.


2	The distinction between off- and on-budget is
		A)	unimportant because the off-budget programs are so small.
		B)	clouded because the two parts are not published.
		C)	important because the off-budget side is large and has typically been in surplus.
		D)	suspect because programs shift between off- and on- budget weekly.


3	Historically, the federal government has always closed the year
		A)	owing money.
		B)	spending more than it takes in.
		C)	with a balanced budget.
		D)	a) and c)


4	With regard to off- and on-budget deficits and surpluses which of the following is historically accurate.
		A)	Both have typically been in surplus.
		B)	Off-budget surpluses have often existed at the same time as on-budget deficits.
		C)	Off-budget deficits have often existed at the same time as on-budget surpluses.
		D)	Both have typically been in deficit.


5	Inflation-adjusted deficits and surpluses suggest that there were significant real deficits
		A)	during World War II.
		B)	during the 1980s and early 1990s.
		C)	during the 1950s and 1960s.
		D)	a) and b)


6	Economists are generally unconcerned about a budget deficit that
		A)	is small relative to gross domestic product.
		B)	is short-lived as a result of a war or recession.
		C)	reduces industries ability to borrow.
		D)	a) and b)


7	Economists insist that there is an important difference between the cyclical and structural deficits because a structural deficit is much more likely to be
		A)	small.
		B)	long lasting.
		C)	solved without political fallout.
		D)	close to zero.


8	To a novice in budgetary matters, which of the following is surprising and accurate
		A)	The federal government owes no money.
		B)	The federal government has historically been a net saver .
		C)	Much of the federal government's debt is owed to other parts of the federal government.
		D)	Most of the federal debt is owned by Saudi Arabia.


9	Economists are not generally in favor of a balanced budget amendment to the U.S. Constitution because they are concerned it will be
		A)	procyclical.
		B)	prolapsed.
		C)	prophetic.
		D)	isopropyl.


10	The estimates of the budget deficit and surplus for the future have been
		A)	stunningly accurate through time.
		B)	remarkably stable through growth and recession.
		C)	ignored by Presidents and Congress for policy or political purposes.
		D)	highly variable and unreliable.

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