QUESTION 1

1. The budget that has been executed at the end of the fiscal year is almost never identical to the plan enacted at the outset.

   True

   False

0.5 points

QUESTION 2

1. Which of the following items would NOT be included in a capital budget?

   		new building
   		employee salaries
   		highway construction project
   		dam

0.5 points

QUESTION 3

1. State and local governments depend heavily on grants from the federal government.

   True

   False

0.5 points

QUESTION 4

1. Most commonly, budgeting is considered to be _____________ .

   	a.	rational
   	b.	zero-based
   	c.	incremental
   	d.	all of the above

0.5 points

QUESTION 5

1. In most states roughly 10% or less of their general expenditures is provided to local units of government (counties and cities) in the form of state aid.

   True

   False

0.5 points

QUESTION 6

1. Which of the following is a way in which gubernatorial powers differ between the states?

   	a.	Governors have different powers in terms of organizing the executive branch.
   	b.	Governors have different powers in terms of appointing agency officials.
   	c.	Governors have different powers in terms of vetoing legislative acts.
   	d.	Governors have different powers in terms of releasing and transferring appropriated funds.
   	e.	All of the above

0.5 points

QUESTION 7

1. Which of the following is a way that local governments can seek to promote economic growth?

   	a.	Lower the proportion of deposits that banks within the city must keep in reserve.
   	b.	Reduce tax rates or exempt from taxation companies agreeing to do business within the city.
   	c.	Physical infrastructure improvements that make the jurisdiction attractive to businesses looking to relocate.
   	d.	All of the above
   	e.	b and c, but not a

0.5 points

QUESTION 8

1. Outsider or stakeholder involvement occurs predominantly during the ______________part of the budget cycle.

   	a.	preparation
   	b.	submission/approval
   	c.	implementation
   	d.	audit and evaluation
   	e.	b and d

0.5 points

QUESTION 9

1. When the federal government seeks to stimulate economic growth by increasing government spending and/or cutting taxes, the government is practicing

   	a.	Fiscal policy
   	b.	Monetary policy
   	c.	Recessionary budget making
   	d.	Political grandstanding
   	e.	None of the above

0.5 points

QUESTION 10

1. In the state budgeting process, local assistance refers to

   	a.	the technical assistance that states lend to local units of government (e.g. counties and cities) in helping them prepare their budgets.
   	b.	money provided by local units of government to the state.
   	c.	state payments to local units of government to meet costs that otherwise would have to be borne by the local jurisdictions.
   	d.	the fact that local units of government were created by the states and therefore need to assist the state in achieving its policy goals.
   	e.	None of the above

0.5 points

QUESTION 11

1. Which of the following would be a method by which a city could reduce its expenses and balance its budget?

   	a.	Transfer operation of its sewer system to a sanitary district.
   	b.	Transfer the city bus system to the local state university.
   	c.	Transfer its dog pound and animal control function to the county.
   	d.	Transfer the airport and economic development office to regional authorities.
   	e.	All of the above would be methods by which a city could reduce its expenses and balance its budget.