If the Government's Budget Is in Surplus Even When the Economy

question 209

Multiple Choice

If the government's budget is in surplus even when the economy is at full employment, the surplus is said to be

• A) persisting.
• B) cyclical.
• C) discretionary.
• D) structural.

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Definitions:

Allocative Efficiency

Occurs when no resources are wasted; it is not possible to make any person better off without making someone else worse off.

Economic Problem

The challenge of limited resources to meet unlimited wants and needs of society.

Capital Goods

Long-lasting goods purchased or used by businesses to produce goods or services and not intended for final consumption.

Consumer Goods

Products and services that are consumed by individuals or households to satisfy their needs or wants.