ECONOMICS
MONEY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Set by the Constitution
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Always in the form of a sales tax
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A free choice for spending
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A system to establish a balanced budget
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Detailed explanation-1: -Discretionary spending is money formally approved by Congress and the President during the appropriations process each year. Generally, Congress allocates over half of the discretionary budget towards national defense and the rest to fund the administration of other agencies and programs.
Detailed explanation-2: -Discretionary spending vs essential expenses So to be clear, discretionary expenses are optional. In any given month you could not pay a certain cost and there wouldn’t be any legal ramifications.
Detailed explanation-3: -These categories can be further broken down into nondiscretionary expenses, which are things you can’t do without, such as food and rent, and discretionary expenses, which you can do without (vacations and entertainment).
Detailed explanation-4: -Discretionary costs (avoidable costs) are costs or capital expenditures that can be curtailed or even eliminated in the short term without having an immediate impact on the short-term profitability of a business. Examples of discretionary costs include advertising, maintenance, training, R&D, etc.