Page |1
CGFM - Exam 1: Government Environment
Questions and Correct Answers/ Latest
Update / Already Graded
Government Sovereignty
Ans: Nat'l government can't be sued by states or by citizens
w/out its permission.
Government Authority
Ans: Derived from constitutions or charters (local versions of a
constitution), statutes, executive orders & regulations.
3 Levels
Ans: 1) National
2) State
3) Local
The primary purpose of each is to provide services to citizens.
Separate and distinct, yet they may coordinate their efforts.
3 Branches
Ans: 1) Legislative
2) Executive
All rights reserved © 2025/ 2026 |
, Page |2
3) Judicial
Separation of Powers
Ans: Feature of the Constitution that requires each of the three
branches of government—legislative, executive, and judicial—to
be relatively independent of the others so that one cannot
control the others. Power is shared among the three branches
of government.
Checks and Balances
Ans: Constitutionally-mandated system that allows each
branch of government to amend or veto acts of another branch
so as to prevent any one branch from exerting too much power.
Judicial Review
Ans: Power given to the judicial branch in order to sustain
checks and balances. Courts can overturn laws passed by the
legislature & signed by the president/governor if courts deem
them unconstitutional. Enables judges to question the legality
and reasonableness of a gov't manager's administrative actions.
(Test question)
Federalism
All rights reserved © 2025/ 2026 |
, Page |3
Ans: U.S. system of gov't. Power is distributed among different
levels of gov't and no one level of gov't has complete authority
over all areas of public policy. No centeralized s ystem of gov't
in U.S.
Popular Sovereignty
Ans: Basic concept of the Constitution. The idea that ultimate
authority belongs to the voting people and even a sovereign
gov't is accountable to citizens.
Legal Constraints
Ans: Derived from constitutions, statutes, and ordinances.
They can include limits on the type of tax, rate of tax, and tax
collection purposes.
Purpose
Term
Amount
Process
Ans: Ways in which constitutions and charters specify whether
the government can incur debt and limit government
borrowing. (PTAP)
All rights reserved © 2025/ 2026 |
, Page |4
Reserved Clause
Ans: Stems from the 10th Amendment to the U.S.
Constitution. Powers not delegated to the Nat'l gov't, nor
prohibited to the states, are reserved to the states and the
people. Nat'l gov't can influence lower levels, but can't dictate
the manner in which state & local gov't will operate.
Areas of Overlap in Governmental Responsibilities
Ans: Nat'l and state gov'ts exercise authority in civil defense
and the Nat'l Guard. For example, during peacetime, Nat'l
Guard units fall under the direction of state governors and meet
the needs of the state. During nat'l emergencies, these units
are under command of the President, Commander in Chief.
State and local gov'ts have some responsibility for traffic
safety. All 3 levels impact public education.
Grants
Ans: Money that is distributed to lower-level governments with
the purpose of funding special projects.
Laboratories of Democracy
All rights reserved © 2025/ 2026 |
CGFM - Exam 1: Government Environment
Questions and Correct Answers/ Latest
Update / Already Graded
Government Sovereignty
Ans: Nat'l government can't be sued by states or by citizens
w/out its permission.
Government Authority
Ans: Derived from constitutions or charters (local versions of a
constitution), statutes, executive orders & regulations.
3 Levels
Ans: 1) National
2) State
3) Local
The primary purpose of each is to provide services to citizens.
Separate and distinct, yet they may coordinate their efforts.
3 Branches
Ans: 1) Legislative
2) Executive
All rights reserved © 2025/ 2026 |
, Page |2
3) Judicial
Separation of Powers
Ans: Feature of the Constitution that requires each of the three
branches of government—legislative, executive, and judicial—to
be relatively independent of the others so that one cannot
control the others. Power is shared among the three branches
of government.
Checks and Balances
Ans: Constitutionally-mandated system that allows each
branch of government to amend or veto acts of another branch
so as to prevent any one branch from exerting too much power.
Judicial Review
Ans: Power given to the judicial branch in order to sustain
checks and balances. Courts can overturn laws passed by the
legislature & signed by the president/governor if courts deem
them unconstitutional. Enables judges to question the legality
and reasonableness of a gov't manager's administrative actions.
(Test question)
Federalism
All rights reserved © 2025/ 2026 |
, Page |3
Ans: U.S. system of gov't. Power is distributed among different
levels of gov't and no one level of gov't has complete authority
over all areas of public policy. No centeralized s ystem of gov't
in U.S.
Popular Sovereignty
Ans: Basic concept of the Constitution. The idea that ultimate
authority belongs to the voting people and even a sovereign
gov't is accountable to citizens.
Legal Constraints
Ans: Derived from constitutions, statutes, and ordinances.
They can include limits on the type of tax, rate of tax, and tax
collection purposes.
Purpose
Term
Amount
Process
Ans: Ways in which constitutions and charters specify whether
the government can incur debt and limit government
borrowing. (PTAP)
All rights reserved © 2025/ 2026 |
, Page |4
Reserved Clause
Ans: Stems from the 10th Amendment to the U.S.
Constitution. Powers not delegated to the Nat'l gov't, nor
prohibited to the states, are reserved to the states and the
people. Nat'l gov't can influence lower levels, but can't dictate
the manner in which state & local gov't will operate.
Areas of Overlap in Governmental Responsibilities
Ans: Nat'l and state gov'ts exercise authority in civil defense
and the Nat'l Guard. For example, during peacetime, Nat'l
Guard units fall under the direction of state governors and meet
the needs of the state. During nat'l emergencies, these units
are under command of the President, Commander in Chief.
State and local gov'ts have some responsibility for traffic
safety. All 3 levels impact public education.
Grants
Ans: Money that is distributed to lower-level governments with
the purpose of funding special projects.
Laboratories of Democracy
All rights reserved © 2025/ 2026 |
