Federal Budget and Expenditures Concepts

The video tutorial explains the structure of the federal budget, focusing on categories like defense, social security, and discretionary spending. It highlights the historical context of budget allocations, the impact of defense spending, and the challenges faced by income security programs due to demographic changes. The concept of incrementalism in budgeting is discussed, along with the nature of uncontrollable expenditures driven by entitlement programs and economic conditions.

What color represents National Defense spending in the 2008-2009 budget overview?

• Purple

• Yellow

• Tan

• Green

Which part of the federal budget is still over half when considering discretionary spending?

• Interest Payments

• Defense Budget

• Medicare

• Social Security

What historical event marked the beginning of a significant increase in defense spending?

• Cold War

• Vietnam War

• World War II

• World War I

What is the largest program in the federal spending for income security?

• Medicare

• Social Security

• Medicaid

• Temporary Assistance

Which program is not funded by income tax according to the transcript?

• Social Security

• Defense

• Medicaid

• Medicare

What is a major reason for the financial problems faced by benefits programs?

• Increasing medical costs

• Shorter life expectancies

• Lower taxes

• Decreasing population

What budgeting concept uses last year's budget as a baseline for the current year?

• Incrementalism

• Discretionary Spending

• Entitlement Programs

• Uncontrollable Expenditures

What is the term for spending determined by the number of recipients?

• Fixed Expenditures

• Discretionary Expenditures

• Variable Expenditures

• Uncontrollable Expenditures

What happens to entitlement program expenditures during an economic downturn?

• They decrease

• They remain the same

• They increase

• They are eliminated

What is one way to control expenditures during an economic downturn?

• Increase unemployment benefits

• Eliminate Social Security

• Cut food stamp amounts

• Increase taxes