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
Correct Answer: 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
Solution : The correct answer is (b) 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.
A surplus occurs when the government's revenues, typically from taxes and other sources, exceed its expenditures or spending. In other words, the government has more income than expenses during a given period, resulting in a surplus of funds. A surplus can be used to pay down debt, invest in infrastructure, or be saved for future needs.
On the other hand, a deficit occurs when the government's spending exceeds its revenues. This means that the government is spending more money than it is bringing in through taxes and other sources of income. To cover the shortfall, the government may borrow money by issuing debt, such as Treasury bonds, or rely on other sources of financing.
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 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 3: When the government has no debt
Option 4: When the government has a deficit
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 4: When the government has a surplus
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 budget deficit and a national debt?
Option 1: A budget deficit is the difference between government spending and revenue in a given year, while the national debt is the accumulation of all previous deficits
Option 2: A national debt is the difference between government spending and revenue in a given year, while a budget deficit is the accumulation of all previous deficits
Option 3: A budget deficit is a surplus in government spending, while a national debt is a deficit in government spending
Option 4: A national debt is a surplus in government spending, while a budget deficit is a deficit in government spending
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