Question : What is a budget deficit?
Option 1: When the government spends more than it takes in
Option 2: When the government takes in more than it spends
Option 3: When the government has no debt
Option 4: When the government has a surplus
Correct Answer: When the government spends more than it takes in
Solution : The correct answer is (a) When the government spends more than it takes in.
A budget deficit occurs when the government's total expenditures exceed its total revenue or income in a given period, typically a fiscal year. In other words, it is a situation where the government spends more money than it receives from sources such as taxes, fees, and other forms of revenue.
To cover the deficit, the government may resort to borrowing money, issuing bonds, or using other financing methods. This leads to an increase in the national debt, as the government accumulates liabilities to bridge the gap between its expenditures and revenue.
It's important to note that having a budget deficit or surplus is a common occurrence for governments, and it is often influenced by various economic factors and policy decisions.
Question : What is the difference between a surplus and a deficit?
Option 1: A surplus is when the government spends more money than it takes in, while a deficit is when the government takes in more money than it spends
Option 2: A surplus is when the government takes in more money than it spends, while a deficit is when the government spends more money than it takes in
Option 3: A surplus is when the government has no debt, while a deficit is when the government has debt
Option 4: A surplus is when the government has debt, while a deficit is when the government has no debt
Question : What is a budget surplus?
Option 1: When the government takes in more than it spends
Option 2: When the government spends more than it takes in
Option 4: When the government has a deficit
Question : What is the difference between a deficit budget and a surplus budget?
Option 1: A deficit budget spends more than it earns, while a surplus budget earns more than it spends
Option 2: A deficit budget earns more than it spends, while a surplus budget spends more than it earns
Option 3: A deficit budget earns as much as it spends, while a surplus budget earns more than it spends
Option 4: A deficit budget spends as much as it earns, while a surplus budget spends more than it earns
Question : What is the difference between a balanced budget and a deficit budget?
Option 1: A balanced budget spends as much as it earns, while a deficit budget spends more than it earns
Option 2: A balanced budget earns as much as it spends, while a deficit budget spends more than it earns
Option 3: A balanced budget spends more than it earns, while a deficit budget earns more than it spends
Option 4: A balanced budget earns more than it spends, while a deficit budget spends as much as it earns
Question : What is the difference between a balanced budget and a surplus budget?
Option 1: A balanced budget has equal spending and revenue, while a surplus budget has more revenue than spending
Option 2: A balanced budget has more spending than revenue, while a surplus budget has equal spending and revenue
Option 3: A balanced budget has more revenue than spending, while a surplus budget has equal spending and revenue
Option 4: A balanced budget has equal spending and revenue, while a surplus budget has more spending than revenue
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