If government spending is $650 billion while government revenue is $950 billion, the government is said to have a
A) $300 billion budget deficit.
B) $1,600 billion budget balance.
C) $300 billion budget surplus.
D) $950 billion budget deficit.

Question

Quizplus · Accepted Answer

A budget surplus occurs when government revenue exceeds government spending. In this case, the government has collected $950 billion in revenue while spending only $650 billion, resulting in a surplus of $300 billion. Therefore, the correct answer is C.

If Government Spending Is $650 Billion While Government Revenue Is