In the country of Econoville, tax revenue collected by the government this year is $15 million, and government outlays are $12 million. This country currently has a Choose one: A. budget deficit of $27 million. B. budget deficit of $3 million. C. budget surplus of $3 million.

Question

Lainey Merritt

Business

15 June, 20:35

In the country of Econoville, tax revenue collected by the government this year is $15 million, and government outlays are $12 million. This country currently has a Choose one: A. budget deficit of $27 million. B. budget deficit of $3 million. C. budget surplus of $3 million.

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Answers (1)

Know the Answer?

Hunter Robbins · Answer 1

The correct option is C

Explanation:

The budget will be in surplus when the government outlays or the expenditure is less than or does not exceed the revenue collected by the government. So, in this case,

Government revenue is $15 million

Government Outlays is $12 million

Which states the revenue is more than outlays so it is situation of surplus and the surplus amount is $3 million ($15 - $12).