A government budget surplus occurs during a budget year when A) tax revenues government spending. B) tax revenues = government spending. C) tax revenues

Question

A government budget surplus occurs during a budget year when
A) tax revenues > government spending.
B) tax revenues = government spending.
C) tax revenues < government spending.
D) tax revenues + government spending = personal income.

Quizplus · Accepted Answer

A government budget surplus occurs when tax revenues exceed government spending during a budget year. This means that the government has more money coming in than going out, resulting in additional funds that can be used for paying down debt, investing in the economy, or providing additional services to citizens. When tax revenues are equal to or less than government spending, there is either a balanced budget or a budget deficit, respectively. The equation in option D is not a valid representation of government budgeting.

A Government Budget Surplus Occurs During a Budget Year When