If Tax Revenues Equal 20% of Total Output and Government

question 89

Multiple Choice

If tax revenues equal 20% of total output and government expenditures equal 25% of total output,then there is a

• A) budget deficit.
• B) budget surplus.
• C) trade imbalance.
• D) trade deficit.
• E) trade surplus.

---

Definitions:

Substantial Performance

A legal concept indicating that if a party has performed enough of its contractual obligations, it may still enforce the contract despite minor breaches.

Uniform Commercial Code

A comprehensive set of laws that govern commercial transactions in the United States to standardize and simplify the legal process.

Insolvent Seller

A seller who cannot meet their financial liabilities as they become due.

Liquidated Damages

A predetermined amount of money that must be paid as compensation for failure to perform under a contract.