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

Performance budgeting allocates resources based on program outcomes and results, tying expenditures to measurable goals.

Question 2

In public budgeting, what is 'earmarking'?

Accepted Answer

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

Answer

Earmarking legally dedicates specific revenue sources (such as gas taxes for highways) to particular programs, restricting how those funds may be spent.

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

Impoundment occurs when the executive branch withholds spending of funds Congress has appropriated; the Impoundment Control Act of 1974 significantly restricted this practice.

Question 4

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

Accepted Answer

Pork barrel spending / earmarks

Answer

Pork barrel spending (earmarks) refers to legislators directing federal funds to specific local projects, often to benefit their home districts or constituencies.

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

The Gramm-Rudman-Hollings Act introduced automatic sequestration as a mechanism to enforce deficit reduction targets, pioneering the use of across-the-board spending cuts.

MPA - Master of Public Administration Practice Test

MPA - Master of Public Administration Practice Test

MPA Public Budgeting and Finance 3