12.4 Government Spending

Multiple Choice

Why is government spending an important topic for citizens to understand?

• Because it affects the quality of public services and the economy

• Because it only impacts politicians

• Because it is unrelated to daily life

• Because it is a private matter

Open Ended

What might happen if the government did not spend money on certain things?

Multiple Choice

Which of the following statements about government borrowing is correct?

• The government only borrows money when it has a surplus.

• The government never borrows money.

• The government frequently borrows money to pay for expenses when it does not have enough money.

• The government borrows money only from individuals.

Multiple Choice

Which of the following actions can Congress take to prevent the government from defaulting due to the debt ceiling?

• Reduce all government spending to zero

• Raise the debt ceiling permanently

• Temporarily raise the debt ceiling

• Both B and C

Fill in the Blanks

Mandatory spending is spending that Congress is already committed to, while discretionary spending is based on

made by Congress and the president.

Multiple Choice

In which category does the government have flexibility in how it spends its revenue?

• mandatory spending

• discretionary spending

• interest on debt

Multiple Select

Which of the following are examples of mandatory spending?

• Social Security

• Medicare

• Defense

• Medicaid

Multiple Choice

Why are entitlements categorized as mandatory spending?

• because the government allocates money to them each year

• because the government cannot adjust how much it spends on them

• because their costs change over time

• because they are available to people who meet certain criteria

Fill in the Blanks

Most state governments are required to have a

budget each year.

Multiple Choice

What is the primary purpose of the U.S. debt ceiling?

• To limit how much debt the federal government can have at once

• To control government spending on education

• To set tax rates for citizens

• To determine the value of the U.S. dollar

Open Ended

Reflecting on today’s lesson about government spending and the debt ceiling, what is one question you still have or something you would like to know more about?