Page 109 - Macroeconomics. book docx_Neat

If government expenditure is 400 and government revenue is 350, what is the budget

position?

A. Budget surplus of 50 B. Balanced budget

C. Budget deficit of 50 D. Budget surplus of 400

Correct Answer: C

Q2

The government collects 600 in taxes and spends 600 on public services. The

government budget is:

A. Budget deficit of 0 B. Budget surplus of 600
C. Balanced budget D. Budget deficit of 600

Correct Answer: C

Q3

If government revenue is 800 and government expenditure is 700, the budget result is:

A. Budget deficit of 100 B. Budget surplus of 100

C. Balanced budget D. Budget deficit of 700

Correct Answer: B

Q4

Government expenditure increases from 500 to 650, while revenue remains 500. What

is the new budget position?

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