Question : Which of the following is an example of a mandatory spending program in the United States federal budget?
Option 1: National defense
Option 2: Education
Option 3: Social security
Option 4: Infrastructure
Correct Answer: Social security
Solution : The correct answer is (c) Social security.
Social security is an example of a mandatory spending program in the United States federal budget. Mandatory spending programs, also known as entitlement programs, are authorized by law and require the government to provide specific benefits to eligible individuals or entities. These programs are considered mandatory because the government is obligated to fund them based on the established eligibility criteria and benefit formulas.
Social security is a federal program that provides income support to retired workers, disabled individuals, and the survivors of deceased workers. It is primarily funded through payroll taxes paid by employees and employers. The program provides retirement benefits, disability benefits, and survivor benefits to eligible individuals and their families.
Question : Which of the following is an example of discretionary spending in the United States federal budget?
Option 1: Social security
Option 2: Medicare
Option 3: Defense spending
Option 4: None of the above
Question : Which of the following is an example of an automatic stabilizer?
Option 1: Unemployment benefits
Option 2: Defense spending
Option 3: Education spending
Option 4: Social security spending
Question : Which of the following is an example of a transfer payment in a government budget?
Option 1: Military spending
Option 2: Education spending
Option 3: Social security benefits
Option 4: Infrastructure spending
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
Question : Which of the following is an example of an automatic stabilizer in the federal budget?
Option 1: Unemployment insurance
Option 2: Military spending
Option 4: All of the above
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