Understanding National Debt and Spending

What is mandatory spending according to the document?

• Spending that can be reduced without changing the law

• Spending that cannot be reduced without changing the law

• Spending that is flexible year-to-year

• Spending that is determined by state governments

What is discretionary spending?

• Spending that is fixed and cannot be changed

• Spending that has year-to-year flexibility

• Spending that is only for defense

• Spending that is only for education

Why are politicians reluctant to change laws affecting Social Security and Medicare?

• It would increase the budget deficit

• It would be unpopular

• It would decrease government revenue

• It would increase discretionary spending

What must happen if spending cuts are to be made in the budget?

• Cuts must come from mandatory spending

• Cuts must come from discretionary spending

• Cuts must come from both mandatory and discretionary spending

• Cuts must come from Social Security and Medicare

What was the budget deficit in 2016 according to the document?

• $500 billion

• $587.3 billion

• $600 billion

• $700 billion

What was the total federal government spending in 2016?

• $3.2 trillion

• $3.5 trillion

• $3.8 trillion

• $4 trillion

What was the total federal government revenue in 2016?

• $3.2 trillion

• $3.5 trillion

• $3.8 trillion

• $4 trillion

Which category of spending includes Social Security and Medicare?

• Discretionary spending

• Mandatory spending

• Defense spending

• Nondefense spending

What is the primary source of federal government revenue?

• Corporate taxes

• Income taxes

• Social Security taxes

• Other taxes

In 2016, what was the approximate federal deficit of the US?

• $400 billion

• $500 billion

• $600 billion

• $700 billion