Government Spending and Budget Concepts

In 2011, the U.S. federal government spent $3.8 trillion, divided into mandatory and discretionary spending. Mandatory spending includes entitlements like Social Security, Medicare, and Medicaid, while discretionary spending covers defense and other government functions. The government collected $2.2 trillion in revenue, leading to a budget deficit. The video highlights the difficulty of balancing the budget without redesigning government roles and spending priorities.

In 2011, how much did the federal government spend?

• $3.8 trillion

• $5.0 trillion

• $4.5 trillion

• $2.2 trillion

Which of the following is NOT part of mandatory spending?

• Social Security

• Medicaid

• Medicare

• Defense

What is the interest the government pays on its debt called?

• Fixed interest

• Variable interest

• Gross interest

• Net interest

What does discretionary spending require each year?

• Automatic inclusion

• Congressional approval

• Presidential approval

• Public voting

Which of the following is included in defense spending?

• Social Security

• Medicare

• Food stamps

• Foreign military aid

Which department is part of discretionary spending?

• Medicare

• Social Security

• Department of Agriculture

• Medicaid

How much revenue did the federal government collect in 2011?

• $1.5 trillion

• $4.0 trillion

• $3.0 trillion

• $2.2 trillion

What is a common target for budget cuts according to social welfare advocates?

• Education

• Social Security

• Defense

• Infrastructure

What is necessary to solve the budget problem according to the video?

• Specific cuts

• Increased taxes

• Government redesign

• More borrowing

What should the redesign of government begin with?

• Increasing taxes

• Defining the proper role of government

• Cutting defense spending

• Eliminating social programs