HISET Social Studies Practice 2025 - Free HISET Social Studies Practice Questions and Study Guide

Question: 1 / 400

What is described by a 'Budget Surplus'?

A situation where government expenses are lower than its revenues

A 'Budget Surplus' refers to a financial situation where government expenses are lower than its revenues. In other words, it indicates that the government has generated more income, typically through taxes and other revenue sources, than it has spent on programs and services. This surplus can be used for various purposes, such as paying down debt, saving for future expenditures, or investing in public projects.

The other options do not accurately define a budget surplus. A deficit in the national budget suggests that expenses exceed revenues, which is the opposite of a surplus. A balanced financial statement entails equal revenues and expenditures, meaning there is neither a surplus nor a deficit. Overspending by local governments simply describes a situation where expenses surpass income without considering the overall revenues, which does not align with the concept of a surplus.

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A deficit in the national budget

A balanced financial statement

Overspending by local governments

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