BUSINESS ADMINISTRATION
BUSINESS POLICY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Interest on the federal debt
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The military
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Entitlement programs such as Social Security and Medicare
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Education
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Detailed explanation-1: -Social Security, Medicare, and Medicaid make up nearly 50 percent of all federal spending. Various income security programs, such as Supplemental Nutrition Assistance Program, Unemployment Insurance, Earned income tax credit and Child tax credit, account for an additional 18 percent of mandatory spending.
Detailed explanation-2: -Major expenditure categories are healthcare, Social Security, and defense; income and payroll taxes are the primary revenue sources.
Detailed explanation-3: -Federal spending is classified in two basic categories: mandatory and discretionary. About 63 percent of the federal budget is mandatory spending, 30 percent is discretionary spending, and the rest is interest payments on debt (see chart).