If the Government Has No Debt Initially, but Then Has

question 87

Multiple Choice

If the government has no debt initially, but then has annual revenues of $10 billion per year for 4 years and annual expenditures of $10.5 billion per year for 4 years, then the government has

• A) a budget surplus of $0.5 billion per year and a debt of $2 billion at the end of the 4 years.
• B) a budget deficit of $0.5 billion per year and a budget surplus of $2 billion at the end of the 4 years.
• C) a budget deficit of $0.5 billion per year and a debt of $2 billion at the end of the 4 years.
• D) a budget surplus of $0.5 billion per year and a surplus of $2 billion at the end of the 4 years.

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Definitions:

Thomas Malthus

An English economist and demographer known for his theory that population growth would outstrip food supply, leading to poverty and famine.

Birthrates

Birthrates measure the number of live births per thousand people in a population over a specific period, reflecting the rate at which a population is growing.

Living Standards

Indicate the wealth, comfort, material goods, and necessities available to an individual or society.

Per Capita Energy Use

The average amount of energy consumed per person within a given geographic area.