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
Correct Answer: Defense spending
Solution : The correct answer is (c) Defense spending.
Discretionary spending refers to the portion of the United States federal budget that is determined through annual appropriations and can be adjusted or modified by policymakers. It typically includes funding for various government agencies, programs, and initiatives. Defense spending, which encompasses the budget allocated for national defense and military activities, is an example of discretionary spending. On the other hand, social security and Medicare are considered mandatory spending programs as they are authorized by existing laws and are not subject to annual appropriations. Mandatory spending typically includes entitlement programs and other obligations that are determined by eligibility criteria and benefit formulas.
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
Question : The largest category of federal government spending is:
Option 1: Defense spending
Option 2: Social security
Option 3: Medicare
Option 4: Interest on the national debt
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 an automatic stabilizer in the federal budget?
Option 1: Unemployment insurance
Option 2: Military spending
Option 4: All of the above
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
Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile