Consider the Government's Budget Balance

question 24

Multiple Choice

Consider the government's budget balance.Suppose G = 2500 and the government's net tax revenue is equal to 0.2Y.When Y = 11 000,the government is running a budget

• A)deficit of 1500.
• B)surplus of 300.
• C)balance.
• D)deficit of 300.
• E)surplus of 1500.

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Definitions:

Movie Rental

The temporary provision of a film for personal viewing, typically in exchange for a fee.

Marginal Utility

The additional satisfaction or utility that a person receives from consuming an additional unit of a good or service.

Budget Constraint

A concept in economics that represents all the combinations of goods and services that a consumer may purchase given current prices and their income level.

Price

The cost of buying a product or service, typically influenced by the balance of supply and demand.