$$\begin{array} { c c c }
& \begin{array} { c }
\text { Government } \
\text { outlays } \
\text { (trillions of }
\end{array} & \begin{array} { c }
\text { Tax revenue } \
\text { (trillions of }
\end{array} \
\text { Year } & \text { 2005 dollars) } & \text { 2005 dollars) } \
\hline 2005 & 0.75 & 0.80 \
2006 & 0.80 & 0.83 \
2007 & 0.87 & 0.86 \
2008 & 0.95 & 0.95 \
2009 & 1.06 & 1.02 \
\hline
\end{array}$$
The table above gives a nation's government outlays and tax revenue for 2005 through 2009.
-During which years did the country have a budget deficit?
A) 2005 and 2006
B) 2009 only
C) 2008 only
D) 2007 and 2009
E) all except 2008

Question

$$\begin{array} { c c c } 
& \begin{array} { c } 
\text { Government } \
\text { outlays } \
\text { (trillions of }
\end{array} & \begin{array} { c } 
\text { Tax revenue } \
\text { (trillions of }
\end{array} \
\text { Year } & \text { 2005 dollars) } & \text { 2005 dollars) } \
\hline 2005 & 0.75 & 0.80 \
2006 & 0.80 & 0.83 \
2007 & 0.87 & 0.86 \
2008 & 0.95 & 0.95 \
2009 & 1.06 & 1.02 \
\hline
\end{array}$$ 
The table above gives a nation's government outlays and tax revenue for 2005 through 2009.
-During which years did the country have a budget deficit?
A) 2005 and 2006
B) 2009 only
C) 2008 only
D) 2007 and 2009
E) all except 2008

Quizplus · Accepted Answer

To determine whether the country had a budget deficit, we need to compare government outlays to tax revenue. If government outlays are greater than tax revenue, then there is a budget deficit. For each year: - 2005: outlays ($0.75 trillion) < revenue ($0.80 trillion), so no deficit - 2006: outlays ($0.80 trillion) < revenue ($0.83 trillion), so no deficit - 2007: outlays ($0.87 trillion) > revenue ($0.86 trillion), so deficit - 2008: outlays ($0.95 trillion) = revenue ($0.95 trillion), so no deficit - 2009: outlays ($1.06 trillion) > revenue ($1.02 trillion), so deficit Therefore, the country had a budget deficit in 2007 and 2009, giving us choice D as the correct answer.

The Table Above Gives a Nation's Government Outlays and Tax