Question

This diagram shows a government’s budget.

Answer 1

The correct answer is: "balanced".

Assuming that the size of the boxes representsthe sizes of the revenues generated by a state and of its expenditures, as the two sizes are equal then the budget is balanced, because revenue=expenditure.

If these two sizes were not equal then the budget would be unbalanced, and two options could be possible:

• Deficit: expenditure > revenue
• Surplus: revenue > expenditure

Answer 2

The answer is b-balanced