Which two of the following are examples of discretionary spending in government budgets?

• A. Education and Military
• B. Social Security and Military
• C. Medicare and Education
• D. Social Security and Medicare

Answer: (A)

Verified step by step guidance

1. Understand the concept of discretionary spending: Discretionary spending refers to government expenditures that are decided annually through the budgeting process and are not mandated by law. These are typically flexible and subject to change based on priorities.
2. Identify examples of discretionary spending: Discretionary spending often includes areas like education, military, infrastructure, and research, as these are not legally required and can be adjusted by policymakers.
3. Contrast discretionary spending with mandatory spending: Mandatory spending includes programs like Social Security and Medicare, which are legally required and funded automatically based on eligibility criteria. These are not considered discretionary because they are fixed obligations.
4. Analyze the options provided: Review each pair of options to determine which includes discretionary spending categories. For example, education and military are discretionary, while Social Security and Medicare are mandatory.
5. Select the correct answer based on the analysis: Choose the pair that includes only discretionary spending categories, ensuring alignment with the definition provided in step 1.