MPA Public Budgeting and Finance 1

Question 1

Which budgeting approach starts from zero each fiscal year and requires justification for every line item?

Accepted Answer

Zero-based budgeting

Answer

Zero-based budgeting (ZBB) requires agencies to justify all expenditures from scratch each budget cycle rather than building on prior-year allocations.

Question 2

What is the primary purpose of the Congressional Budget Office (CBO) in the U.S. federal budget process?

Accepted Answer

To provide nonpartisan economic and budget analysis to Congress

Answer

The CBO provides independent, nonpartisan scoring and economic analysis to help Congress make informed budgetary decisions.

Question 3

Which principle states that government expenditures must not exceed revenues over the business cycle?

Accepted Answer

Principle of balance

Answer

The principle of balance (or balanced budget) requires that total government spending not exceed total revenues over a defined period.

Question 4

What does 'PAYGO' stand for in U.S. federal budget law?

Accepted Answer

Pay as you go

Answer

PAYGO (Pay-As-You-Go) requires that new mandatory spending increases or tax cuts be offset by equivalent savings or tax increases.

Question 5

A continuing resolution (CR) in the federal budget context is used to:

Accepted Answer

Temporarily fund the government when appropriations bills have not been enacted

Answer

A continuing resolution allows the federal government to operate temporarily at prior-year funding levels when new appropriations legislation has not been passed.

MPA - Master of Public Administration Practice Test

MPA - Master of Public Administration Practice Test

MPA Public Budgeting and Finance 1