The Government's Budget Deficit or Surplus Equals the

question 46

Multiple Choice

The government's budget deficit or surplus equals the

• A) change in outlays divided by change in revenue.
• B) average outlay divided by average revenue.
• C) change in revenue minus change in outlays.
• D) total tax revenue minus total government outlays.

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Definitions:

Inelastic Supply

Describes a situation where the quantity supplied of a good changes by a smaller percentage than the percentage change in its price.

Excise Tax

A tax levied on specific goods, services, or transactions, often to discourage consumption or generate revenue for public purposes.

Cigarette Manufacturers

Companies engaged in the production and sale of cigarettes.

Burden

Often used in the context of taxation or regulations, indicating the weight of responsibility or negative impacts placed on individuals or organizations.