PAF 300: Public Management & Administration Spring 2013

(DUE: May 4, 2013 at 11:59 p.m.) EXAM THREE (MAXIMUM POINTS =100)

General Guidelines: This is an open book exam based on what you have learned in your readings and lectures. If you do not submit on time you will forfeit the exam (refer to syllabus on the late exam policy). Please upload the exam in BB in a Microsoft Word document. Please make sure it is attached and it opens. Please do not upload as PDF document. Section I: Definition of Concepts Instructions: Define ONLY 25 of the following concepts using complete sentences in your own words (NOT PHRASES) to explain each concept. There is a total of 50 points for this section. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. Merit System Patronage Human Resources Management Public Service Motivation Performance Budget Property Tax Progressive & Regressive Taxation/Taxes Tax Preferences Entitlements Sales Tax Privatization Contracting Out Equal Employment Opportunity (EEO) Affirmative Action (AA) Human Capital Total Quality Management Whistle-Blower/Blowing OMB Mandatory Spending Discretionary Spending Budget Forecasting Incremental Budget Line Item Budget Policy Statement Managerial Blueprint

Section II: Multiple Choice Questions (MCQs) Instructions: Please read each question carefully before selecting the answer that best captures what is being asked. Each question is worth 2 points each. When responding to Section II questions type the correct letter or word that corresponds with the answer you selected e.g. 1). A, 2) C, 3) TRUE, 5) FALSE. You must write out the word True of False not A or B. There is no selection for A and B in this section. There is a total of 50 points for this section 1. Which of the following is not one of the four largest items of federal government spending? a. Social Security b. national defense c. aid to other nations for defense and development d. Medicare 2. The major single source of revenue for the federal government is the a. excise taxes on products such as gasoline and alcohol. b. income tax on corporations. c. Social Security and Medicare payroll tax. d. individual income tax. 3. The largest single object of state and local government spending is a. education. b. welfare services. c. transportation. d. police and prisons. 4. A performance budget a. lists expenditures of each department separately to permit measurement of its performance. b. categorizes spending according to the governments major functions. c. groups expenditures and revenues together to ensure that they are kept in balance. d. provides funds to governmental units in proportion to the quality of their performance as measured by some standard. 5. A tax preference is: a. a reduction in a normal tax liability or obligation to serve a defined social purpose. b. a special rate of taxation on income or property to favor a certain social or economic group. c. the use of temporary tax increases to raise money in times of fiscal stress. d. the setting of differential tax rates on local propertycommercial, residential, and agricultural.

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6. In the United States, pure privatization has occurred: a. primarily at the national level, as with the postal service. b. extensively at all levels of government, particularly in public utilities and telecommunications. c. rarely, since governments have always relied heavily on the private sector for basic services. d. primarily at the local level, with facilities and services such as hospitals and trash collection. 7. The voucher is: a. a means by which individuals can use public funds to obtain certain private goods or services. b. a contract between a government and a business to supply services to the former. c. a government subsidy to a private school. d. a means to enable low-income families to obtain government services. 8. Coproduction is : a. the performance of public services by private individuals and organizations on a voluntary basis. b. the voluntary contribution of money or goods to support public functions. c. the use of public-private partnerships to expand the services available to the public. d. the purchase of goods and services by governments from charitable and nonprofit organizations. 9. Which characteristics best describe the risks of contracting EXCEPT for one of the following? a. political favoritism. b. cost effectiveness. c. mismanagement. d. corruption. 10. Market failure occurs a. when corporate executives mismanage the finances of corporations such that they fall into bankruptcy. b. when businesses fail to supply the goods and services that meet popular demands. c. in the undesirable social and economic impacts of a freely operating business system. d. in the form of harmful and fraudulent products marketed by corporations. 11. The purpose of the deregulation movement of the 1970s and 1980s was to a. decentralize business regulation from the federal to the state governments. b. gives certain industries greater autonomy in market choices to promote competition and innovation. c. make more lenient the enforcement of existing rules. d. reduces the presidents legal powers over rule making and enforcement. 3

Questions 12-23 are True/False Questions. If true please write in TRUE or if false, write the word FALSE as the answer. IMPORTANT NOTE: Please do not write A for True and B for False. If you write A or B this is considered an INCORRECT answer. Students will receive zero points for this incorrect answer. Please be careful to follow the instructions and write out True or False for your answer. 12. A budget may be defined as, a financial plan, including proposed expenditures and estimated revenues, for a period of time. 13. Most federal revenue comes for corporate income tax paid from companies with more than 10 million dollars in annual revenue. 14. Two thirds of the federal budget is made up of mandatory spending. 15. Spending on interest on the national debt and other mandatory obligations means that the United States is able to make spending decisions on only more than a third of the federal spending. 16. Administration by aristocrats allowed for the national pool of talent to be considered in who governed the United States. 17. The start of the spoils system is usually marked with the election of Thomas Jefferson in 1801. 18. According to you text, having a balanced budget is not just a goal but it is mandated by law. 19. Debt service payments decrease with the increase in the federal debt freeing up more funds for nondiscretionary funding. 20. The Budget Enforcement Act of 1990 introduced a Save as you Go (SAVEGO) to help citizens prepare for the end of the social security trust. 21. The Gramm-Rudman-Hollings Act was passed in 1985 and it was supposed to force Congress to balance the budget in five years. 22. The Hatch Act was a law that was passed which allows federal employees to engage in partisan political activities if they receive permission from their public agency director. 23. According to your text, the idea of affirmative action or hiring preferences are passive practices and govern what agencies are discouraged or not supposed to do.

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24. According to your text, there are a set of widely held beliefs about how public administration should change. Which one of the following is not one of the five beliefs? a. The private sector should be heavily involved with the delivery of public services. b. Public agencies should not have to do more with less in the delivery of public goods and services. c. Public agencies should focus on the customer. d. Public agencies should become less hierarchical and allow for decision-making to occur at all levels of government. 25. The disarticulated state, according to your Smith and Licari text means what? a. It is a restatement of the principle-agent theory. b. It means that geographical borders are decreasing in importance to political jurisdictions. c. It is a theoretical concept which post-modernist Public Administration theorists use to describe the patronage system. d. All of the above. EXAM END _________________________________________________________ PLEASE SUBMIT THE ANSWER KEY SHEET ONLY FOR YOUR ANSWER. PLEASE MAKE SURE YOUR NAME IS ON THE ANSWER SHEET.