Ch.8 Public Policy And The Bureaucracy Exam Prep 2nd Edition

CHAPTER 8

Public Policy and the Bureaucracy

Multiple Choice Questions

1. When it comes to public policy, which of the following statements is correct?
   1. Elected officials advise and implement, while bureaucrats decide and direct.
   2. Funds for public services and programs are largely raised through private donations.
   3. Bureaucrats advise and implement, while elected officials decide and direct.
   4. None of the above
2. What purpose do green papers serve in policy development?
   1. They stimulate public discussion of an issue.
   2. They provide clear directions to bureaucrats about policy implementation.
   3. They outline changes to the machinery of government.
   4. They detail how much proposed policies will cost.
3. German sociologist Max Weber identified several characteristics of a functioning government, including which of the following?
   1. Governments must use standardized hiring and firing procedures.
   2. Bureaucrats must follow written rules.
   3. Bureaucrats must keep records of their actions.
   4. All of the above
4. What is a government document released to signal a government’s proposed course of action?
   1. Blue paper
   2. White paper
   3. Green paper
   4. Red paper
5. What is pluralism?
   1. the presence of diverse socioeconomic groups participating in public affairs
   2. the belief that public policy is best designed by experts
   3. a grassroots political movement that aims to wrest power from political elites
   4. the use of neutral pronouns in policy documents
6. What is the first stage in the public-policy cycle?
   1. problem identification
   2. policy formation
   3. goal setting
   4. agenda setting
7. Which theory holds that citizens are self-interested actors whose decisions fulfill their own needs and wants?
   1. pluralism
   2. rational choice
   3. functionalism
   4. institutionalism
8. Lock-up refers to which of the following?
   1. the place where parliamentarians are sent if they get too boisterous during Question Period
   2. one of the sanctions levied against bureaucrats who fail to report unethical behavior
   3. the use of strategies to maintain public support for a public policy
   4. the process through which invited individuals are given confidential advance access to budget documents
9. The principal-agent problem is:
   1. the disconnect between what an elected leader directs and what bureaucrats do
   2. a new challenge brought about by the elimination of middle management in bureaucracies
   3. easily solved through modern communications technology
   4. all of the above
10. What is the Treasury Board?
    1. The cabinet committee responsible for authorizing government revenues & expenditures
    2. the committee of deputy ministers responsible for monetary policy
    3. the parliamentary committee tasked with establishing interest and lending rates
    4. None of the above

1. What is a situation in which government spending exceeds revenues during a given period?
   1. budget forecast
   2. budget deficit
   3. budget surplus
   4. budget estimates

1. During times of budget deficit, right-wing ideology supports:
   1. increasing public spending
   2. decreasing public spending
   3. increasing public borrowing
   4. None of the above

1. Sales is an example of ________ taxation.
   1. indirect
   2. value-added
   3. direct
   4. sin
2. What is direct taxation?
   1. The collection of taxes by an intermediate body on behalf of the government.
   2. The collection of taxes by the government without using an intermediary.
   3. The collection of taxes by the federal government on behalf of provincial governments.
   4. The collection of taxes by provincial governments on behalf of the federal government.

1. What kind of income tax policy existed in Alberta from 1999 to 2015?
   1. Progressive tax
   2. Flat tax
   3. Harmonized tax
   4. Provincial sales tax

1. What is financial support provided by government to citizens with no other recourse to income known as?
   1. social assistance
   2. tax credits
   3. stimulus spending
   4. baby bonus
2. What was created in 1966 as a mandatory retirement savings program?
   1. Canada Pension Plan
   2. Goods and Services Tax
   3. Registered Retirement Savings Plan
   4. Old Age Security
3. Employment insurance is ________.
   1. a mandatory program that provides temporary income to workers who lose their jobs.
   2. funded by employees.
   3. administered by the federal government.
   4. all of the above
4. What is the notion that the most qualified candidate should be awarded a position, contract, or other financial benefit known as?
   1. patronage
   2. rational choice
   3. merit principle
   4. None of the above
5. The welfare state:
   1. is a suite of government policies designed to assist the least fortunate in society
   2. is also known as the social safety net
   3. consists of a combination of entitlement and insurance programs
   4. All of the above
6. What is a policy tool that encourages a desired behaviour, without providing direct incentives or disincentives to ensure compliance?
   1. nudging
   2. coaxing
   3. creative compliance
   4. regulation
7. What is the announcement of adjustments to a government’s revenue and spending projections?
   1. budget estimates
   2. fiscal update
   3. budget lock-in
   4. supply management
8. Which of the following bodies are established by governments in areas of the economy that the private sector is seen as unable or unfit to serve?
   1. Crown corporations
   2. public affairs bureaus
   3. treasury boards
   4. All of the above
9. Which of the following is not a core responsibility of the Treasury Board?
   1. supply management
   2. organization of the bureaucracy
   3. fiscal management
   4. determining priorities of departmental spending
10. What is a situation in which revenues exceed spending during a given period known as?
    1. budget surplus
    2. budget stimulus
    3. budget deficit
    4. budget forecast
11. The Bank of Canada ________.
    1. is an independent Crown corporation
    2. works closely with the federal department of finance
    3. sets the minimum national interest rate that is then followed by banks
    4. All of the above
12. Which of the following is a system that manages the supply of eggs, dairy, and poultry in Canada?
    1. social assistance
    2. supply management
    3. collective bargaining
    4. demand-side economics
13. Which of the following is not part of the traditions surrounding the annual budget?
    1. journalists are placed in lock-up to prevent leaks
    2. the finance minister buys or re-soles a pair of shoes
    3. the finance minister announces the budget in the legislature
    4. All of the above
14. What is the formal negotiation of the terms of an employment contract between the representatives of a group of employees and their employer known as?
    1. trade negotiations
    2. collective bargaining
    3. strike action
    4. none of the above
15. What is a tax exemption on money spent on a specific activity known as?
    1. tax credit
    2. personal allowance
    3. charitable donation
    4. None of the above
16. Which province does not have some form of a provincial sales tax (PST)?
    1. New Brunswick
    2. Manitoba
    3. Alberta
    4. British Columbia
17. A ________ paper is meant to stimulate public discussion on a particular issue while a ________ paper outlines a government’s proposed course of action.
    1. black; red
    2. green; white
    3. white; green
    4. red; black
18. ________ holds that the diversity of perspectives in a society should be reflected in the shaping of public policy.
    1. populism
    2. pluralism
    3. rational choice theory
    4. All of the above
19. Which of the following bodies is often informally referred to by the last name of its head?
    1. government board
    2. commission of inquiry
    3. Crown corporation
    4. government agency
20. Program investments being assembled to produce deliverables which will then have discernible short-, medium-, and long-term impacts are an example of ________.
    1. rational choice theory
    2. agenda setting
    3. input-output-outcome logic modeling
    4. the principal-agent problem
21. Governments issue ____ as a means of borrowing money to cover budget shortfalls.
    1. tax credits
    2. stimulus
    3. fiscal updates
    4. bonds

1. Which cabinet committee is tasked with reviewing and authorizing government revenue and expenditure policies?
   1. Committee of the Whole
   2. Treasury Board
   3. Bank of Canada
   4. Finance Committee
2. Budget surpluses often invite questions as to whether the government is:
   1. over-taxing or under-spending
   2. under-taxing or over-spending
   3. under-borrowing or over-lending
   4. over-burdened or over-extended
3. What type of tax policy is set in such a way that those with the highest incomes pay the highest rate of tax?
   1. Scaling tax policy
   2. Progressive tax policy
   3. Flat tax policy
   4. Median tax policy
4. Which of the following statements about balanced budget legislation is accurate?
   1. more than half of the provinces have, at one point, established these laws
   2. they are designed to prevent governments from running budget deficits
   3. some impose salary cuts on ministers whose governments run a deficit
   4. All of the above
5. When are governments most likely to engage in stimulus spending?
   1. when their populations age
   2. when they are in collective bargaining
   3. in good economic times
   4. during economic downturns
6. In terms of accountability, most agencies, boards, and commissions report to:
   1. the deputy minister of a line department
   2. the President of the Treasury Board
   3. a minister of the Crown
   4. the governor general or lieutenant governor
7. Where is a harmonized sales tax (HST), or one that combines both federal and provincial rates, used?
   1. Quebec
   2. Ontario and Manitoba
   3. Alberta and British Columbia
   4. Ontario and Atlantic Canada
8. Which of the following is a result of the principal-agent problem?
   1. lines of accountability can become blurred
   2. the principles of responsible government could be at risk
   3. distrust can develop between elected officials and bureaucrats
   4. None of the above
9. When do governments tend to announce new, popular government initiatives, while avoiding any tough or potentially unpopular policies?
   1. start-up phase
   2. action phase
   3. clean-up phase
   4. red zone
10. Each line department is overseen by a ______, who is accountable to the _______ for its performance.
    1. member of Treasury Board; prime minister
    2. minister; legislature
    3. assistant deputy minister; deputy minister
    4. government board; Treasury Board
11. Which government bodies operate at an arms-length from political and bureaucratic control?
    1. GSTs
    2. RRSPs
    3. CPPs
    4. ABCs
12. Which of the following is not associated with budget deficits?
    1. When they accumulate, they tend to add to the public debt.
    2. They result solely from revenue shortfalls.
    3. When governments run them, they are said to be “in the red.”
    4. They result when governments are unable or unwilling to balance their budgets.
13. Terms of public servants’ employment are typically detailed in a(n) _______ that is in effect for a specified period, such as four years.
    1. order in council
    2. collective agreement
    3. treaty
    4. None of the above
14. In general, people and parties on the left side of Canada’s political spectrum tend to:
    1. support the rights of workers
    2. support the actions of unions
    3. support increased government spending during economic downturns
    4. All of the above

True or False Questions

1. Policymaking in Canada does not involve much close interaction between elected and non-elected officials.

1. Being “in the black” means a government is running a deficit.
2. Governments borrow money by issuing tax credits.
3. In practice, the stages of the public-policy cycle are not always ordered and linear.
4. Bureaucrats are obliged to follow the directives of their respective ministers, as long as the instructions are within the boundaries of the law.
5. A left-wing approach to budgeting supports delaying spending increases in times of budget surplus.
6. Unions are funded through membership dues that must be paid by members of a unionized workforce.

1. An example of indirect taxation is property tax.
2. The only provincial government who has chosen to harmonize their sales tax with the GST is Ontario.

1. Most provinces and territories do not supplement Canada Student Loans with their own student loan and grant programs.
2. Workers who reside in Quebec pay into the Quebec Pension Plan instead of the Canada Pension Plan.
3. The federal Conservative Party has prioritized the use of tax credits and deductions as a policy initiative and campaign tool.
4. Patronage positions are in place where the primary criterion for the job is the executive’s trust that the appointee will advance the government’s agenda.
5. The partisan allocation of government spending to select constituencies, especially those districts held by the governing party, is known as cod barrel politics.
6. Most government decisions that affect citizens’ daily lives are made in Question Period.
7. The governing mantra for public servants is “fearless advice and loyal implementation”.
8. A white paper outlines a government’s proposed course of action in a policy area.
9. Nudging involves designing policy tools by providing direct incentives for people to do what the government wants them to do.

1. Direct taxation involves the taxpayer paying the government without the involvement of another body.
2. Employment Insurance is a provincial entitlement program that varies from province to province.
3. Patronage involves government contracts and government jobs going to party supporters.
4. Public sector unions often argue in favour of back-to-work legislation to resolve labour disputes with government employers.
5. Unions and corporations are allowed to contribute financial donations to federal political parties.
6. Economic downturns often bring an end to government surpluses.
7. Under some balanced budget laws, ministers can have their salaries cut if they run a budget surplus.
8. Some of the most largest and powerful unions in Canada work on behalf of public servants.
9. Sales taxes are said to be harmonized when they match the corporate income tax rate.
10. Conservatives tend to favour universal approaches to entitlement programs, while Liberals tend to favour means-testing.
11. Partially funded through the Canada Social Transfer, social assistance remains a provincial responsibility.
12. All public servants in Canada are responsible to the Public Service Commission of Canada for the performance of their duties.

Short Answer Questions

1. What is public policy?
2. Define pluralism and explain its role in Canadian politics.
3. Explain the input-output-outcome model of program evaluation using an example.
4. Describe the relationship between the public-policy cycle and the election cycle.
5. What are the differences between flat tax policy and progressive tax policy and what do supporters say are the benefits of each?

1. Using examples, compare entitlement programs with insurance programs. What are the similarities and differences?
2. Detail the suite of programs available to support Canadian seniors with low income.
3. What are pork barrel politics and how is it different from patronage?
4. What characteristics did sociologist Max Weber suggest were essential to a functioning government bureaucracy?
5. What is agenda setting and what is its role in public policy?
6. How does Gender-Based Analysis plus (GBA+) lead to better policy?

1. What is the Canada Health Act and what are its five main principles?
2. Explain the role of Treasury Board in the public-policy process.
3. What is the relationship between a budget deficit and public debt?
4. What are the differences between direct taxation and indirect taxation? Provide an example of each.
5. Using an example, demonstrate how nudging differs from more conventional policy tools.
6. What functions are played by agencies, boards, and commissions (ABCs)?

1. How did the federal government handle the budget crisis of the late-1990s, and what was the result?

1. How do balanced budget laws work?
2. How do tax credits work, and what purpose do they serve?

Essay Questions

1. Using an example, describe how the public-policy cycle functions in Canada.

1. How does left-wing ideology differ from right-wing ideology in times of a budget surplus? Budget deficit?
2. How do governments pay for public-policy initiatives at the provincial and federal level?
3. What safeguards are put in place to ensure governments limit the possibility of financial mismanagement and unethical conduct? How effective are these measures?