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Question : What is the difference between mandatory spending and discretionary spending?

Option 1: Mandatory spending is required by law, while discretionary spending is optional

 

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


Team Careers360 4th Jan, 2024
Answer (1)
Team Careers360 12th Jan, 2024

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 typically determined by entitlement programs, such as Social Security, Medicare, and interest on the national debt. These programs have specific eligibility criteria, and the government is obligated to make payments to eligible individuals or entities.

It's important to note that while discretionary spending is technically optional in the sense that it can be adjusted, it does not mean it is entirely discretionary in practice. Many discretionary programs are considered essential and receive consistent funding year after year, reflecting their importance in government operations and public services.

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