Economics Chapter 10 Study Guide
Terms/Vocabulary
 per capita
 fiscal year
 private sector
 deficit spending
 Balanced Budget Amendment
 entitlement
 balanced budget
 transfer payment
 mandatory spending
 budget surplus
Concepts
 Categories of spending at all levels
 What is the Federal Government responsible for?
 What is the State Government responsible for?
 What is the Local Government responsible for?
 Gramm – Rudman – Hollings Bill
 What is it?
 What does it do?
 Omnibus Budget Reconciliation Act (1993)
 What does it do?
 What are its main provisions?
 Discretionary Spending
 What is it?
 Examples
 Budget Enforcement Act (1990)
 What does it do?
 What are its main provisions?
 Transfer Payments
 What are they?
 What are they used for?
 What levels of government participate in these?
 Budget Approval System
 How is the federal budget constructed and approved?
 What is the difference between federal budgets and state budgets?
 Pay as you go” provisions
 Crowding out effect
 What is the economic effect of this?
 What role does the Federal Government play?
 Government Spending
 Level of combined government consumption versus the nation’s GDP.