12.4 Review

What is the largest entitlement program in the Federal Government's spending?

• Unemployment benefits

• Medicare

• Social Security

• Food stamps

What is the next largest area of expense after entitlements in the Federal Government's spending?

• Healthcare

• National defense

• Education

• Infrastructure

What is controllable spending in the Federal Government's budget?

• Spending on entitlements

• Payment on the public debt

• Spending on the environment

• Spending on national defense

What is uncontrollable spending in the Federal Government's budget?

• Spending on national defense

• Spending on entitlements

• Spending on the environment

• Payment on the public debt

Who puts together the Federal Government's budget and sends it to Congress?

• The President and the Office of Management and Budget

• The Secretary of the Treasury

• The Federal Reserve

• The Supreme Court

What happens if all thirteen appropriations spending bills are not passed before October 1?

• Congress must pass a continuing resolution

• The President must sign an executive order

• The government shuts down

• The budget is automatically approved

How many times has the annual federal budget shown a surplus from 1930 to 2013?

• 20 times

• 5 times

• 10 times

• 13 times

Who adopted the view that government should influence the economy by large increases in public spending in times of high unemployment?

• John Maynard Keynes

• Ronald Reagan

• Franklin D. Roosevelt

• Barack Obama

What is the key element of demand-side economics?

• Lower taxes lead to a stronger economy

• Government borrowing to support increased spending

• Higher employment leads to lower tax revenues

• Reducing public spending in times of high unemployment

Who insists that lower taxes, not high spending, lead to a stronger economy?

• George W. Bush

• John F. Kennedy

• Bill Clinton

• Ronald Reagan