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.
