$$\begin{array} { c c c }
& \begin{array} { c }
\text { Country A } \
\text { Government } \
\text { outlays }
\end{array} & \
& \begin{array} { c }
\text { Tax revenue } \
\text { (trillions of } \
\text { (trillions of }
\end{array} \
\text { Year } & \text { 2005 dollars) } & \text { 2005 dollars) } \
\hline 2005 & 0.75 & 0.80 \
2006 & 0.80 & 0.83 \
2007 & 0.87 & 0.86 \
2008 & 0.95 & 0.95 \
2009 & 1.06 & 1.02 \
\hline
\end{array}$$
$$\begin{array} { c c c }
& \begin{array} { c }
\text { Country B } \
\text { Government } \
\text { outlays }
\end{array} & \
& \begin{array} { c }
\text { Tax revenue } \
\text { (trillions of } \
\text { (trillions of }
\end{array} \
\text { Year } & \text { 2005 dollars) } & \text { 2005 dollars) } \
\hline 2005 & 1.05 & 1.10 \
2006 & 0.90 & 0.92 \
2007 & 0.87 & 0.88 \
2008 & 0.85 & 0.83 \
2009 & 0.70 & 0.75 \
\hline
\end{array}$$
-The above table gives the government outlays and tax revenue from 2005 through 2009 for two countries.In 2008 country A had a ________ and country B had a ________.
A) budget deficit; budget deficit
B) balanced budge; budget surplus
C) balanced budget; budget deficit
D) budget surplus; budget surplus
E) budget surplus; balanced budget

Question

$$\begin{array} { c c c } 
& \begin{array} { c } 
\text { Country A } \
\text { Government } \
\text { outlays }
\end{array} & \
& \begin{array} { c } 
\text { Tax revenue } \
\text { (trillions of } \
\text { (trillions of }
\end{array} \
\text { Year } & \text { 2005 dollars) } & \text { 2005 dollars) } \
\hline 2005 & 0.75 & 0.80 \
2006 & 0.80 & 0.83 \
2007 & 0.87 & 0.86 \
2008 & 0.95 & 0.95 \
2009 & 1.06 & 1.02 \
\hline
\end{array}$$ 
 $$\begin{array} { c c c } 
& \begin{array} { c } 
\text { Country B } \
\text { Government } \
\text { outlays }
\end{array} & \
& \begin{array} { c } 
\text { Tax revenue } \
\text { (trillions of } \
\text { (trillions of }
\end{array} \
\text { Year } & \text { 2005 dollars) } & \text { 2005 dollars) } \
\hline 2005 & 1.05 & 1.10 \
2006 & 0.90 & 0.92 \
2007 & 0.87 & 0.88 \
2008 & 0.85 & 0.83 \
2009 & 0.70 & 0.75 \
\hline
\end{array}$$
-The above table gives the government outlays and tax revenue from 2005 through 2009 for two countries.In 2008 country A had a ________ and country B had a ________.
A) budget deficit; budget deficit
B) balanced budge; budget surplus
C) balanced budget; budget deficit
D) budget surplus; budget surplus
E) budget surplus; balanced budget

Quizplus · Accepted Answer

To determine whether a country has a budget surplus or deficit, we compare the tax revenue with the government outlays. If tax revenue is greater than government outlays, the country has a budget surplus. If government outlays are greater than tax revenue, the country has a budget deficit. If tax revenue and government outlays are equal, the country has a balanced budget. 
Looking at the table for 2008:
Country A had tax revenue of 0.95 trillion dollars and outlays of 0.95 trillion dollars. Thus, Country A had a balanced budget in 2008.
Country B had tax revenue of 0.85 trillion dollars and outlays of 0.83 trillion dollars. Thus, Country B had a budget surplus in 2008. 
Therefore, the best choice is (C) balanced budget; budget deficit.

-The Above Table Gives the Government Outlays and Tax Revenue