-The Table Above Has Data for a Country?s Government Budget

question 4

Multiple Choice

$$\begin{array} { | l | l | } \hline \text { Component } & \begin{array} { l } \text { Dollars } \\\text { (billion) }\end{array} \\\hline \text { Personal income taxes } & 500 \\\hline \text { Social security taxes } & 400 \\\hline \text { Corporate income taxes } & 150 \\\hline \text { Indirect taxes } & 75 \\\hline \text { Transfer payments } & 1,200 \\\hline \begin{array} { l } \text { Expenditure on goods and } \\\text { services }\end{array} & 225 \\\hline \text { Debt interest } & 75 \\\hline\end{array}$$
-The table above has data for a country?s government budget. The data show the government is running a__________ billion.

• A) budget surplus of $650
• B) budget deficit of $375
• C) budget deficit of $550
• D) budget surplus of $300

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Definitions:

Income Elasticity

A measure of how much the demand for a good or service changes in response to changes in the consumer's income.

Inverse Demand Function

A function that represents the price of a good as a function of the quantity demanded.

Soybeans

A species of legume known for its edible bean, which has numerous uses including oil, meal, and livestock feed.

Total Revenue

The income that a company receives from selling its goods or services before any costs or expenses are subtracted.