The video discusses government spending, focusing on mandatory and discretionary spending, and the economic challenges posed by debt and COVID-19. It explains the budget process, the concept of the debt ceiling, and provides a visual representation of government expenditure. The video concludes with instructions for a student assignment on calculating tax rates.

What is the primary difference between mandatory and discretionary spending?

• Both are decided annually by Congress.

• Mandatory spending is set by law, while discretionary spending is decided annually.

• Both are set by law and cannot be changed.

• Mandatory spending is decided annually, while discretionary spending is set by law.

Which of the following is NOT a mandatory spending program?

• Military spending

• Medicare

• Medicaid

• Social Security

How has the COVID-19 pandemic affected government debt?

• It has led to a surplus in government funds.

• It has had no impact on government debt.

• It has increased government debt due to increased spending and reduced tax revenue.

• It has decreased government debt due to reduced spending.

What percentage of government expenditure is mandatory spending?

• 100%

• 75%

• 50%

• 25%

Which source of revenue is the largest for the government?

• Property taxes

• Corporate taxes

• Individual income taxes

• Sales taxes

What is a major challenge in the government budget approval process?

• Too much surplus in the budget

• Agreement between the House and Senate

• Lack of interest from Congress

• No need for a budget

What happens if Congress cannot agree on a budget?

• The budget is passed without changes.

• The government shuts down immediately.

• The previous year's budget is automatically renewed.

• The President decides the budget.

What is the debt ceiling?

• A limit on how much taxes can be raised.

• A limit on how much the government can borrow.

• A limit on how much the government can spend annually.

• A limit on the number of government employees.

What was the government's response to reaching the debt ceiling?

• They voted to remove the debt ceiling.

• They increased taxes on the wealthy.

• They reduced spending significantly.

• They declared bankruptcy.

In the tax rate assignment, what is the first step to calculate taxes for a millionaire?

• Calculate state taxes first.

• Use a website to determine tax rates based on income.

• Determine the millionaire's deductions.

• Estimate the millionaire's expenses.