Economic Test

42 The federal budget is first prepared by the a. Congress. c. Secretary of the Treasury. b. President. d. House Appropriations Committee. 43 The private sector is composed of a. state governments and officials. c. individuals and businesses. b. local governments and businesses. d. the federal government and individuals. 4W Local governments provide such public goods as a. private schools and shopping malls. c. highways and private schooling. b. police and fire protection. d. highways and national defense. 45. Which of the following is NOT an impact of a large federal debt? a. the crowding-out effect c. transfer of purchasing power b. individual incentives to invest are cut down d. lower interest rates 46 Historically, foreign investors have owned about what percentage of the public debt? a. 1 to 5 percent c. 10 to 15 percent b. 5 to 10 percent d. 15 to 20 percent 47 The legislation whose intent was to establish a balanced budget is the a. Budget Enforcement Act. c. Omnibus Budget Reconciliation Act. b. Gramm-Rudman-Hollings Bill. d. Economic Recovery Tax Act. 48 Which of the following is NOT a local government expenditure? a. medicare c. public utilities b. hospitals d. interest on debt 49 If the federal government had a balanced budget last year, a. the federal debt went up. b. the federal debt went down. c. the federal debt did not change. d. the impact on the federal debt is unknown. 50. The level of government with primary responsibility for financing elementary and secondary education is a. county. c. federal. b. state. d. local