Intended to provide secondary students with information on the federal budget, this kit provides a teacher's guide, a test, a crossword puzzle, and a series of reproducible graphs and handouts focusing on budget deficits and the national debt. Study materials and graphics are based almost entirely on articles and graphics found in "U.S. News & World Report." The first set of graphics demonstrates the value of trillions in everyday terms, illustrates projected deficits through 1985, places the 925.5 billion dollar budget in perspective, and shows the relationship between government borrowing and rising interest costs. Subsequent graphics show spending trends with resulting deficits and the number of Americans who were predicted to benefit from federal spending in 1985. Articles reproduced on ditto masters present ideas that lawmakers such as Bob Dole (Kansas), Russell Long (Louisiana), Jim Jones (Oklahoma), Pete Domenici (New Mexico), and Barber Conable (New York), have for cutting the federal deficit. "Budget-Limit Bandwagon Picks Up Speed," a lesson designed as a reading and writing exercise, is provided for students of varying ability levels. Final materials include "Tidal Wave of Red Ink," which graphically examines deficits under presidential administrations from Truman to Reagan, and "Budget Deficit Needs a 'Quick-Fix--the Quicker the Better,'" a transcribed conversation with economist Eliot Janeway. (LH)