The Government Would Be Running a Budget Surplus If

question 53

Multiple Choice

The government would be running a budget surplus if

• A) government spending were lower than consumer spending.
• B) tax revenues were less than government spending.
• C) it imported less from abroad than it exported.
• D) government spent less than it collected in taxes.

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Definitions:

Equilibrium

A state in which the conflicting forces of demand and supply are in balance. When a market is in equilibrium, the decisions of consumers and producers are brought into harmony with one another, and the quantity demanded will equal the quantity supplied.

Revenue

Aggregate income a company secures from its sales of products or rendering of services in a given period.

Excise Tax

A tax imposed on specific goods, services, or activities to raise revenue or discourage their use.

Revenue

The total income generated by a business or organization from its normal business operations.