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.
