#1
What is the primary objective of government budgeting?
Allocation of resources
ExplanationOptimizing the use of funds for societal needs
#2
Which budgetary type focuses on day-to-day government expenditures on goods and services?
Operating budget
ExplanationManaging routine expenses for goods and services
#3
Which entity is responsible for preparing the federal budget in the United States?
Office of Management and Budget (OMB)
ExplanationUS federal budget architect
#4
What does the term 'pay-as-you-go' budgeting refer to in government finance?
Paying for expenses with available funds
ExplanationCovering expenses with existing funds
#5
Which international organization provides economic forecasts and policy advice to its member countries?
Organization for Economic Cooperation and Development (OECD)
ExplanationGlobal economic forecasting and policy advisory body
#6
What is a fiscal policy tool that involves adjusting the money supply and interest rates to influence the economy?
Monetary policy
ExplanationControlling economic conditions through money and interest rates
#7
Which economic indicator is used to measure the overall health of an economy and includes all goods and services produced?
Gross Domestic Product (GDP)
ExplanationSum of all goods and services in an economy
#8
Which budgetary approach involves estimating expenditures based on the previous year's budget with adjustments?
Incremental Budgeting
ExplanationBuilding on the previous year's budget with modifications
#9
What is the primary purpose of a contingency fund in government budgeting?
Cover unexpected expenses
ExplanationReserving funds for unforeseen costs
#10
What is the purpose of a budget surplus in government finances?
Reducing public debt
ExplanationUsing surplus to decrease overall government debt
#11
In the context of government budgeting, what does the term 'deficit' refer to?
Shortfall in revenue compared to expenditures
ExplanationRevenue falling short of expenses
#12
Which type of budget aims to address environmental and social concerns while allocating resources?
Green Budget
ExplanationConsidering environmental and social factors in resource allocation
#13
In the context of fiscal policy, what does contractionary fiscal policy involve?
Reducing government spending and increasing taxes
ExplanationDecreasing spending and raising taxes to cool the economy
#14
In the context of public finance, what does the acronym GFS stand for?
Government Financial Statements
ExplanationSummary of government financial data
#15
Which factor is NOT considered in the calculation of the Human Development Index (HDI)?
Government budget surplus
ExplanationExclusion from HDI computation