Question : What is the difference between mandatory and discretionary spending?
Option 1: Mandatory spending is required by law, while discretionary spending is optional
Option 2: Discretionary spending is required by law, while mandatory spending is optional
Option 3: Mandatory spending is related to national defense, while discretionary spending is related to education
Option 4: Discretionary spending is related to national defense, while mandatory spending is related to social welfare programs
Correct Answer: Mandatory spending is required by law, while discretionary spending is optional
Solution : The correct answer is (a). Mandatory spending is required by law, while discretionary spending is optional.
Mandatory spending refers to government expenditures that are required by law and are not subject to annual appropriations or discretionary decision-making. These spending programs are typically established through legislation and include entitlement programs such as Social Security, Medicare, and Medicaid. The government is obligated to make these payments to eligible individuals or entities based on predetermined eligibility criteria and benefit formulas.
Discretionary spending, on the other hand, is spending that is subject to annual appropriations and is determined through the discretionary decision-making process. It includes funding for various government agencies, departments, programs, and initiatives, such as defense, education, infrastructure, research, and foreign aid. The allocation of discretionary spending is determined by the government's priorities and can be adjusted from year to year through the budgeting process.
Question : What is the difference between mandatory spending and discretionary spending?
Option 2: Mandatory spending is optional, while discretionary spending is required by law
Option 3: Mandatory spending is related to defense, while discretionary spending is related to social programs
Option 4: Mandatory spending is related to social programs, while discretionary spending is related to defense
Option 3: Mandatory spending is for national defense, while discretionary spending is for education
Option 4: Mandatory spending is for social security, while discretionary spending is for healthcare
Option 1: Mandatory spending is spending that is authorized by Congress every year, while discretionary spending is spending that is not authorized by Congress every year
Option 2: Mandatory spending is spending that is required by law, while discretionary spending is spending that is not required by law
Option 3: Mandatory spending is spending that is authorized by the President, while discretionary spending is spending that is authorized by Congress
Option 4: Mandatory spending is spending that is required by the Constitution, while discretionary spending is spending that is not required by the Constitution
Question : Which function performed by labels is highlighted in the given statement? Statement: It provides information required by law.
Option 1: Describe the product and specify it's contents.
Option 2: Provide information required by law
Option 3: To help in grading of the products
Option 4: Helps in promotion of products.
Question : With increase in national income by Rs.5000 crore, investment increased by Rs.10000 crore, the value of multiplier is
Option 1: 5
Option 2: 2
Option 3: 1
Option 4: 0.5
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