12.6 Setting the Federal Budget

Multiple Choice

Which of the following is a key difference between mandatory and discretionary spending in the federal budget?

• Mandatory spending is required by law, while discretionary spending is determined through the annual appropriations process.

• Discretionary spending is required by law, while mandatory spending is determined annually.

• Mandatory spending only includes defense, while discretionary spending includes social programs.

• Discretionary spending cannot be changed by Congress.

Multiple Choice

An example of a discretionary item in the federal budget is

• interest on the public debt

• spending on national parks

• Social Security payments

• veterans' pensions

Multiple Choice

Which category receives the largest portion of discretionary spending in the United States federal budget?

• Social Security

• Medicare

• Defense Discretionary

• Other Mandatory

Multiple Select

Which of the following are methods used to create the executive branch's budget proposal? Choose the 2 correct answers.

• Incremental Budgeting

• Zero-Based Budgeting

• Performance Budgeting

• Priority-Based Budgeting

Multiple Select

Which of the following statements are parts of the budget process? Select 3 that apply.

• The Senate and House of Representatives approve their own budget bills.

• The judicial branch decides if the budget is constitutional.

• A committee reconciles the budgets prepared by the Senate and the House of Representatives to create one budget.

• The president signs or vetoes a budget.

Multiple Choice

Which of the following best describes the purpose of a continuing resolution (CR) in the budget process?

• It allows the government to keep operating at previous funding levels until a new budget is agreed upon.

• It consolidates all budgetary items into a single bill.

• It increases funding for all government programs.

• It eliminates the need for Congress to pass a budget.

Multiple Choice

Which response best explains how the line-item veto would affect the budget?

• allow Congress the power to overturn the president's wishes on the budget

• combat wasteful spending

• encourage the president not to use the pocket veto

• give the executive branch more power to further balance the branch's power

Multiple Choice

What is the difference between mandatory and discretionary spending in the federal budget?

• Mandatory spending is required by law and cannot be changed easily, while discretionary spending is decided by Congress each year.

• Mandatory spending is for defense only, while discretionary spending is for social programs.

• Mandatory spending is optional, while discretionary spending is required by law.

• Mandatory spending is only for emergencies, while discretionary spending is for regular expenses.

​How does the United States government create a budget?

• ​The president initiates the budget process by submitting a budget proposal to Congress, the Office of Management and Budget (OMB), works for months to create its proposal.

• Congress makes decisions about how much money different agencies and programs should get.

• Congress can earmark, that is, set aside money from the budget to fund specific projects.

• The derogatory term pork barrel spending is often applied to wasteful spending created to help one state or district. Incumbents often use it to get reelected. Reelection is easier if politicians can point to ways they improved their state or district