If a local government collects taxes of $500,000,has $350,000 of government consumption expenditures,makes transfer payments of $100,000,and has no interest payments or investment,its budget would

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Quizplus · Accepted Answer

The budget surplus is calculated by subtracting the total expenditures from the total taxes collected. Here, total expenditures include government consumption expenditures ($350,000) and transfer payments ($100,000), totaling $450,000. Subtracting this from the taxes collected ($500,000) results in a surplus of $50,000.

If a Local Government Collects Taxes of $500,000,has $350,000 of Government