Question

TRUE-FALSE QUESTIONS

1. The Commission on Economy and Efficiency was established in an attempt to reduce the number of federal agencies created during World War II by former President Herbert Hoover in 1947.

2. Less than half of all national government expenditures during the 1980s were classified as “uncontrollable.”

3. After both the Civil War and World War II, national government expenditures declined from their wartime peaks but remained significantly higher than prewar levels.

4. The creation of the Executive Office of the President coincided with the rise of performance budgeting.

5. “Ripple effects” are most important in connection with government decisions regarding debt management.

6. Throughout most of U.S. history, budgeting has been incremental.

7. Tax breaks have grown to the point that if we were to eliminate all of those currently in existence we also could all but eliminate annual budget deficits.

8. Budget making at the national, state, and local levels is characterized by institutional and political centralization. 9. Since the mid-1970s, total revenues (national plus state plus local) have declined while costs have increased, leading to increased competition among governments, deficit spending, and “cutback management.”

10. U.S. government spending increased 75 percent from fiscal year (FY) 2005 to FY 2007.

11. As a U.S. Senator, Republican presidential candidate John McCain often voted for increased entitlement spending.

12. From 1998–2002, federal government revenues exceeded expenditures.

13. The three general patterns in the budgetary history are presidential expansion, government involvement in private sector, and congressional debate.

Answer 1

QUESTION 1 : The Commission on Economy and Efficiency was established in an attempt to reduce the number of federal agencies created during World War II by former President Herbert Hoover in 1947.

ANSWER : This statement is false.

President William Howard Taft was the one who appointed the Commission on Economy and Efficiency. The commission was established to study and suggest the reforms and effective methods for the federal government of United States. More specifically it focused on presidential budget. This was during the period between 1910 to 1913. So we can conclude that the statement given in the question was wrong or false.