Courses » SS2 » SS2 Economics » Economics Exam Topics » Meaning of Surplus And Deficit Budget - Questions and Answers

Meaning of Surplus And Deficit Budget - SS2 Economics Past Questions and Answers - page 1

1

What is a surplus budget?

A

A situation where expenses exceed revenue

 

B

A situation where revenue exceeds expenses

C

A situation where revenue and expenses are equal

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2

What can a surplus budget be used for?

A

To invest in new projects

B

To accumulate debt

C

To increase expenses

 

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3

What is a deficit budget?

A

A situation where expenses exceed revenue

B

A situation where revenue exceeds expenses

C

A situation where revenue and expenses are equal

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4

What can a deficit budget lead to?

A

Accumulation of debt

B

Increased revenue

 

C

More expenses

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5

Why is a surplus budget generally considered a positive financial situation?

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6

What is the main disadvantage of a deficit budget?

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