Fiscal Federalism: Definition, Theory & Examples


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Fiscal Federalism attempts to define the financial relationship between federal or central governments and _____.

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1. Who created the theory of Fiscal Federalism?

2. Which Act prompted the shift towards Fiscal Federalism in the United States?

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About This Quiz & Worksheet

Use the quiz and worksheet to assess what you know about fiscal federalism. Topics you will need to know include the relationships defined by fiscal federalism and who created the theory.

Quiz & Worksheet Goals

Use these study tools to:

  • Identify the act which brought fiscal federalism to prominence in the U.S.
  • Understand the theory of why federal governments should fund state and local governments
  • Determine the policies that thrusted fiscal federalism forward in the 1960s

Skills Practiced

Use the worksheet and quiz to:

  • Reading comprehension - ensure that you draw the most important information from the related lesson on fiscal federalism
  • Critical thinking - apply relevant concepts to examine information about the expansion of fiscal federalism in the U.S. in a different light
  • Interpreting information - verify that you can read information regarding the Act which essentially created fiscal federalism in the U.S.
  • Information recall - access the knowledge you've gained regarding the inventor of this economic theory

Additional Learning

Want to know more about fiscal federalism? Read this lesson named Fiscal Federalism: Definition, Theory & Examples which will cover the following:

  • Understand why fiscal federalism was initiated in the U.S.
  • Recognize under what U.S. policies the theory was expanded
  • Be able to explain Medicaid