Issues in Economics Today 8th Edition By Robert Guell – Test Bank

Multiple Choice

1. Federal Spending in 2016 was
A) $4 trillion.
B) $4 billion.
C) $40 trillion.
D) $400 trillion.

Answer: A
Learning Objective: 11-01
Topic: Using Our Understanding of Opportunity Cost
Blooms: Remember
AACSB: Analytical Thinking
Difficulty: 1 Easy

2. Prior to 2009, Federal Spending as a percentage of GDP had peaked in
A) 1973.
B) 1976.
C) 1982.
D) 2005.

Answer: C
Learning Objective: 11-01
Topic: Using Our Understanding of Opportunity Cost
Blooms: Remember
AACSB: Analytical Thinking
Difficulty: 1 Easy

3. Between 1955 and 2006, Federal Spending as a percentage of GDP ranged between
A) 16% and 22%.
B) 22% and 30%.
C) 35% and 45%.
D) 47% and 61%.

Answer: A
Learning Objective: 11-01
Topic: Using Our Understanding of Opportunity Cost
Blooms: Remember
AACSB: Analytical Thinking
Difficulty: 1 Easy

4. Between 2009 and 2011, Federal Spending as a percentage of GDP ranged between
A) 16% and 22%.
B) 22% and 25%.
C) 35% and 45%.
D) 47% and 61%.

Answer: B
Learning Objective: 11-01
Topic: Using Our Understanding of Opportunity Cost
Blooms: Remember
AACSB: Analytical Thinking
Difficulty: 1 Easy

5. The United States Constitution states that
A) Congress and the President must agree on spending.
B) a law must be passed to approve spending for a government activity.
C) the President may spend money according to his/her own priorities.
D) a law must be passed to approve spending for a government activity that Congress and the President agree on.

Answer: B
Learning Objective: 11-01
Topic: A Primer on the Constitution and Spending Money
Blooms: Remember
AACSB: Analytical Thinking
Difficulty: 1 Easy

6. Federal tax dollars can be spent only if
A) Congress passes a law that the President signs.
B) Congress passes a law and overrides a veto.
C) Congress passes a law and fails to override the veto.
D) Congress passes a law that the President signs and overrides a veto.

Answer: D
Learning Objective: 11-01
Topic: A Primer on the Constitution and Spending Money
Blooms: Remember
AACSB: Analytical Thinking
Difficulty: 1 Easy

7. A continuing resolution allows
A) spending to continue as it has been for a specified period of time.
B) spending on Presidential priorities without Congressional approval.
C) Congress to spend money directly without Presidential signature.
D) spending to continue a program forever.

Answer: A
Learning Objective: 11-01
Topic: A Primer on the Constitution and Spending Money
Blooms: Remember
AACSB: Analytical Thinking
Difficulty: 1 Easy

8. A continuing resolution allows spending to go on
A) as long as the resolution states.
B) for no longer than a week.
C) for no longer than a year.
D) for no longer than a day.

Answer: A
Learning Objective: 11-01
Topic: A Primer on the Constitution and Spending Money
Blooms: Remember
AACSB: Analytical Thinking
Difficulty: 1 Easy

9. In planning for a Fiscal year which of the following is supposed to happen first
A) an appropriations bill.
B) a continuing resolution.
C) a budget bill.
D) a Presidential veto.

Answer: C
Learning Objective: 11-01
Topic: A Primer on the Constitution and Spending Money
Blooms: Remember
AACSB: Analytical Thinking
Difficulty: 1 Easy

10. Laws that change the tax code must begin
A) in the House of Representatives.
B) in the Senate.
C) with the President.
D) none of these, they may begin anywhere.

Answer: A
Learning Objective: 11-01
Topic: A Primer on the Constitution and Spending Money
Blooms: Remember
AACSB: Analytical Thinking
Difficulty: 1 Easy