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WorksheetsFederal Budget and Government Spending Quiz
Total questions: 20
Worksheet time: 5hrs 0mins
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
How does borrowing money affect the government?
It creates immediate surplus
It reduces mandatory spending
It creates debt with interest
It increases tax revenue
What is retirement age?
When Social Security benefits begin
When taxes stop being collected
When mandatory spending ends
When surplus occurs
Which is an example of discretionary spending?
Social Security payments
Medicare benefits
School sports equipment
Veterans' benefits
What is income tax based on?
Age of retirement
Corporate profits
Earned income percentage
Government surplus
How can the government reduce deficit?
Only through borrowing money
Only through increasing spending
Only through mandatory programs
Through cutting programs or raising taxes
What happens when programs are "cut"?
They receive more funding
They are reduced or eliminated
They become mandatory
They generate surplus
Which factor affects the federal budget?
Corporate profits only
Income tax only
Multiple types of taxes and spending
Discretionary spending only
What is public approval?
A type of tax
A mandatory program
A measure of public support
A budget surplus
What creates government debt?
Having a surplus
Collecting taxes
Borrowing money
Cutting programs
Which type of spending can be more easily adjusted?
Mandatory spending
Social Security
Medicare spending
Discretionary spending
