Which of the Following Categories Is an Example of Discretionary

question 282

Multiple Choice

Which of the following categories is an example of discretionary spending?

• A) Social Security
• B) Medicare
• C) food stamps
• D) hurricane relief funds

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Definitions:

Precautions

Actions taken in advance to prevent potential undesirable outcomes or to minimize risks.

Moral Hazard

A situation where one party in a transaction has the opportunity to assume additional risks that negatively affect the other party because they do not bear the full consequences of their actions.

Contract Changes

Modifications or adjustments made to the terms, conditions, obligations, or rights within a contract between parties.

Behavior

The actions or reactions of an entity, often in response to its environment.