Question

In the economy, tax revenue collected by the government this year is $15 million and government outlays are $13 million. This country currently has a ____. Multiple Choice budget deficit of $3 million. budget surplus of $2 million public debt of $2 million budget surplus of $3 million

Answer 1

Answer:

budget surplus of $2 million

Explanation:

When income or receipt increases from the outlay, then budget surplus arises. Whereas when outlay increases from the income or receipts the budget deficit arises.

Revenue Collection for the year = $15 million

Government outlay for the year = $13 million

Budget Surplus / Deficit = $15 million - $13 million = $2 million budget Surplus

Answer 2

Answer:

Budget surplus of $2 million

Explanation:

Tax revenue collected = $15 million

Government outlays = $13 million

Government outlays are government expenditures made by a government in the form of a kind service ( cash disbursement ) which are recorded for the purpose of determine the overall government spending in relation to generated revenue.

since the outlays are lower than the revenue collected there is most likely a budget surplus ( $15 million - $13 million = $2 million ).