Federal Budget and Government Spending Quiz

What is a budget?

• Money earned from investments

• A plan for how available money will be spent

• The total amount of taxes collected

• A government surplus of funds

Which type of spending is required by law?

• Discretionary spending

• Optional spending

• Mandatory spending

• Surplus spending

What happens when the government collects more money than it spends?

• It creates a deficit

• It creates debt

• It creates interest

• It creates a surplus

Which tax is taken directly from employee paychecks?

• Sales tax

• Corporate tax

• Income tax

• Payroll tax

What is the primary purpose of Social Security?

• To fund military operations

• To support retired and disabled workers

• To pay for public education

• To maintain national parks

What does it mean to "balance the budget"?

• To spend more than collected

• To make spending equal to collected money

• To create a surplus

• To eliminate all taxes

What is discretionary spending?

• Money that must be spent by law

• Money spent after required payments

• Money collected from taxes

• Money borrowed from banks

Which is an example of mandatory spending?

• National park maintenance

• School supplies

• Medicare

• Ice cream socials

What happens to public approval when taxes are increased?

• It typically increases

• It typically decreases

• It remains unchanged

• It varies by program

What is corporate tax?

• Tax paid by employees

• Tax paid by corporations on earnings

• Tax on retail sales

• Tax on property