Which of the Following Statements Is Most Correct

question 102

Multiple Choice

Which of the following statements is most correct?

• A)The federal government has produced annual budget deficits for all years but four, when it ran consecutive budget surpluses that began in 1986 during the Reagan administration.
• B)The federal government has produced annual budget deficits for all years but four, when it ran consecutive budget surpluses that began in 1990 during the George H.W.Bush administration.
• C)The federal government has produced annual budget deficits for all years but four, when it ran consecutive budget surpluses that began in 2002 during the George W.Bush administration.
• D)The federal government has produced annual budget deficits for all years but four, when it ran consecutive budget surpluses that began in 1998 during the Clinton administration.
• E)none of the above.

---

Definitions:

Economic Function

The role that an individual, entity, or structure plays within the economy, influencing the distribution, production, and consumption of goods and services.

Profits and Losses

The financial gain or deficit that a business experiences, calculated as the difference between total revenues and total costs.

Income Distribution

The way in which a nation’s total earnings are spread among its population, affecting the economic inequality among different groups.

Competitive Industry Y

An industry where a large number of firms compete against each other to sell their goods or services, making no single firm able to control the market price.