Practice Primary Deficit (5.2.1.3) - Government Budget and the Economy

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8 questions

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3 cards from this section. Quick, good the night before a test.
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Quiz
2 questions · about 1 min · pass mark 70%. Hints available.
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6 sample questions

Question 1.
What is a revenue deficit?
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Look for terms that indicate overspending.
Question 2.
How is a fiscal deficit calculated?
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Think of it as a borrowing situation.
3Question 3.
What indicates a revenue deficit?
- When revenue outputs exceed expenditures
- When expenditures exceed revenue receipts
- When savings increase
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Think about what happens when a government spends too much.
4Question 4.
Fiscal deficit can be defined as:
- True
- False
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Recall the definition that relates to borrowing needs.
Question 5.
Calculate the fiscal deficit if the total revenue is $600 billion and the total expenditure is $800 billion.
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Look for the difference between what has been spent and earned.
Question 6.
Discuss how a country might address an ongoing primary deficit.
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Think about both increasing income and decreasing costs.

4 more questions in this section. Enroll free to practise them all.