A Government That Currently Has a Budget Deficit Can Balance

question 174

Multiple Choice

A government that currently has a budget deficit can balance its budget by__________ .

• A) increasing tax revenues by more than it increases outlays
• B) decreasing tax revenues by more than it decreases outlays
• C) increasing both tax revenues and outlays by the same amount
• D) decreasing tax revenues by more than it increases outlays

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Definitions:

Profit-Maximizing Strategy

A plan or approach designed by a firm to ensure highest possible profit from its operations, taking into account costs and market demand.

Monopoly Pricing

A pricing strategy used by a monopoly where the company can set prices with little to no competition, often above the market rate.

Antitrust Laws

Regulations designed to promote competition and prevent monopolies by restricting certain business practices deemed unfair or anti-competitive.

Less Competitive

Characterized by a lower ability or lack of ability to rival others in the same market.