Test 1 Flashcards
what are some reasons for the federal debt
- leaving the gold standard
- creation of social security
- incrementalist insight
what is the main difference between private and public budgets
private budgets can’t have higher expenditures than revenues and public budgets can
characteristic of pure public goods w example
non rival and non excludable. EX:
characteristics of pure private goods w/example
rival and excludable. EX: iphone
characteristics of toll goods w/example
excludable but non rival. EX: toll bridges (people who use the bridge get the service but it doesn’t diminish the bridge for the next person)
characteristics of common pool goods w/eample
non-excludable but rival. EX: gas and oil deposits
What is tragedy of the commons
because the good is non-excludable it leads to depletion of the resource because everyone can use it
what is incrementalist insight
when government policy moves at a very slow pace
what is the dillon’s rule
a rule of thumb that says if the state is silent about an issue it is reserved for the local governments
how many estimated government entities are there
100,000
What month does the federal budget begin in
October
how many columns are there in the federal budget
4
what does the final report year column say
provides the fiscal numbers for the most recent completed year
what does the progress report year column say
shows what was budgeted for the year and what the projected results are going to be
what does the budget year column say
it provides what has been approved to be paid for and what still needs approval
what does the out year column say
allows the budget to be thought out 4 years in advance for the federal government
what are the 4 steps to the budget cycle
- executive preparation
- legislative consideration
- execution
- audit and evaluation
what is the OMB
office of management of budget. collects all agencies budget requests and sends it to congress for the president
what is the CBO
congressional budget office. the same as the OMB for congress
what is the GAO
government accountability office. the watchdogs for congress
what are the different types of budgeting authority
1.appropritions authority
2.contract authority
3. borrowing authority
4. loan authority
5. entitlement authority
what does appropriations authority mean
allows the agencies to ask for money for specific purposes. most commonly used
what does contract authority mean
provides a contract to allow spending before the agency can spend money. stops backdoor spending
what does borrowing authority mean
allows an agency to borrow funds
