6.3 Government Spending Quiz

What is a household budget?

• A) A plan for government spending.

• B) A list of household chores.

• C) A plan for personal spending.

• D) A document for tracking debt.

What is mandatory spending in the context of the government's budget?

• A) Spending on areas that can be easily cut.

• B) Spending that is optional and decided by Congress each year.

• C) Spending that is required by law and cannot be easily changed.

• D) Spending on luxury items for government officials.

What does discretionary spending mean?

• A) Spending that is not allowed by the government.

• B) Spending that is decided by individual citizens.

• C) Spending that is required by law.

• D) Spending that is chosen by Congress each year.

Which of the following is an example of discretionary spending?

• A) Social Security and Medicare.

• B) Air traffic control and the federal justice system.

• C) Interest on loans.

• D) Mandatory spending on military veterans.

How is the federal budget created?

• A) The president decides the budget unilaterally.

• B) Congress alone creates the budget without any negotiation.

• C) The president and Congress negotiate and compromise to create the budget.

• D) The budget is the same every year and does not change.

What do people buy from the government that is similar to a loan, which they know they will get more money back than they put in?

• Bonds

• Securities

• Stocks

• Coupons

What is the term used to describe a situation where the government spends more money than it brings in?

• Surplus

• Deficit

• Debt

• Balance

What is a potential negative effect of the government operating at a deficit for many years?

• The government might reduce spending on essential services.

• The government might have to increase taxes.

• The government might become less dependent on borrowed money.

• The government might be vulnerable if people suddenly decide not to lend anymore.

What would most people like to see the government operate at instead of a deficit?

• Balance

• Surplus

• Loan

• Debt

Which of the following is a role that people believe the government should play according to the text?

• In keeping people safe.

• In providing free entertainment.

• In controlling all businesses.

• In banning all imports.