Chapter 10 – Government Spending
10-2 Federal Government Expenditures
CA Standards:
12.3 Students analyze the influence of the federal government on the
American economy.
Objectives:
•  Explain how the federal budget is established.
•  Describe the major components of the federal budget.
Write definition of key terms found on
page 249 Use glossary in textbook
- Balanced budget amendment
Read pages 249 - 252
Economics: Principles & Practices
Prepare for Open notebook Quiz
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—  Key Terms page 243
Federal budget
Fiscal year
Federal budget deficit
Appropriations bill
Medicaid
1. What is the federal budget?
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- an annual plan for outlining proposed revenues
and expenditures for the coming year
2. What are the two main phases in the
development and approval of the federal
budget?
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- The President prepares and submits a
budget to Congress
Congress approves the budget
3. What role does the Office of Management
and Budget (OMB) play in preparing the
federal budget?
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The OMB assembles the budget under
presidential guidelines
4. What are 12 categories on which the federal
government spends the most money?
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National defense
Social Security
Interest on the federal debt
Income security
Medicare
Health
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education, training, employment, and social
services
Veteran’s benefits
Transportation
Natural resources and environment
General science, space, and technology
Agriculture or international affairs
5. In which category has the federal
government historically spent the most
money?
- National defense
Be prepared for open
notebook quiz