Question

Which of the following are examples of discretionary spending?

A. defense, education, and Medicaid
B. defense, education, national parks, and environmental cleanup
C. Social Security, Medicare, and defense
D. Social Security, Medicare, and Medicaid

Answer 1

A. defense, education, and Medicaid

Answer 2

B. defense, education, national parks, and environmental cleanup.

Step-by-step explanation:

The federal budget is divided in mandatory spending and discretionary spending. Discretionary spending is the optional part of the financial budget (usually 40%) and needs to be approved by Congress each year. The most common areas in which discretionary spending takes place is national defense, education, foreign aid, scientific research and environmental policies.