Which of the Following Correctly Represents the Budget Deficit

question 70

Multiple Choice

Which of the following correctly represents the budget deficit?

• A) Tax revenue - government purchases
• B) Tax revenue - government outlays
• C) Government purchases - tax revenue
• D) Government outlays - tax revenue
• E) Government outlays - tax revenue - transfer payments.

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Definitions:

Sales

The process of exchanging a product or service for monetary value, typically in a business setting.

Return on Equity

A financial ratio that measures the profitability of a corporation in relation to stockholders’ equity, indicating how well a company uses investment funds to generate earnings growth.

Sales

The activity or business of selling products or services.

Expenses

Outflows of money or other valuable assets, incurred as a result of operating activities or in the pursuit of generating revenues.