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Example Questions
Example Question #1 : Consumer And Federal Relationships
In economics, a deficit is best described as __________
Possible Answers:
a situation in which supply greatly outstrips demand.
a situation where demand greatly outstrips supply.
the balance of trade between two nations.
the amount of money set aside to fulfill government policy aims in a given period of time.
when expenditures exceed revenue in a given period of time.
Correct answer:
when expenditures exceed revenue in a given period of time.
Explanation:
In economics, a deficit occurs when the amount of money being spent (expenditures) exceeds the amount of money being collected (revenue) over a given period of time.
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