A budget surplus
a. occurs when the government has debt equal to zero.
b. causes government debt to increase.
c. exists when government spending is greater than tax revenues.
d. reduces the government's debt.
d
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In the figure above, the difference in wage rate between low-skilled and high-skilled labor is
A) $16. B) $8. C) $20. D) $28.
Modern banks in the United States can keep reserves as:
A. commodity money only. B. a deposit at the Federal Reserve. C. gold. D. in accounts with other banks.
Suppose net domestic product is $4.8 billion, net income earned abroad is $0.7 billion, other business income adjustments net of indirect business taxes and transfers are $0.4 billion, and personal income taxes are $0.8 billion. Then, national income equals
A. $6.7 billion. B. $5.9 billion. C. $2.9 billion. D. $3.6 billion.
Refer to the supply and demand graph below for a public good. Point c on the graph shows where the:
A. Total benefit equals the total cost of the public good
B. Marginal benefit equals the marginal cost of the public good
C. Average benefit equals the average cost of the public good
D. Total benefit of the public good is at the maximum