If the Federal Government Has a Budget Surplus,then It Is

question 21

Multiple Choice

If the federal government has a budget surplus,then it is definitely the case that

• A)tax revenue exceeds government outlays.
• B)tax revenue and government outlays are equal.
• C)the tax revenue is falling and government outlays are rising.
• D)government outlays exceed tax revenue.
• E)the tax revenue is rising and government outlays are falling.

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Definitions:

Externality

An outcome from economic actions affecting external third parties not related to the activity, which could be either advantageous or detrimental.

Market

A system or an area where buyers and sellers interact to trade goods, services, or financial instruments.

Positive Externality

A benefit gained by a third party not directly involved in a transaction or activity, where the social or economic gain is not reflected in the market price.

Social Planner

A theoretical decision-maker in economics who aims to achieve optimal outcomes for society by considering the allocation of resources and distribution of goods and services.