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Question : What is a government surplus?

Option 1: When government revenue is greater than government spending

Option 2: When government revenue is less than government spending

Option 3: When government revenue is equal to government spending

 

Option 4: When government revenue is zero


Team Careers360 13th Jan, 2024
Answer (1)
Team Careers360 24th Jan, 2024

Correct Answer: When government revenue is greater than government spending


Solution : The correct answer is (a). A government surplus occurs when government revenue is greater than government spending.

A government surplus is a financial situation where the government's total revenue from taxes, fees, and other sources exceeds its total expenditures in a given period, typically a fiscal year. It means that the government is collecting more money than it is spending, resulting in a positive balance.

A government surplus can have several implications. It can be an indicator of a healthy and well-managed economy, as it suggests that the government is generating more revenue than it requires for its current expenditures. Surpluses can be used to reduce debt, invest in infrastructure, fund future projects, or be saved for future contingencies.

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