Krugman's Economics For The Ap® Course
Krugman's Economics For The Ap® Course
3rd Edition
ISBN: 9781319113278
Author: David Anderson, Margaret Ray
Publisher: Worth Publishers
Question
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Chapter 6R, Problem 1MCQ
To determine

The correct equation of budget balance.

Expert Solution & Answer
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Explanation of Solution

The budget can be understood as the fundamental document of the government's economic policy. It is a detailed plan of revenues and receipts as well as a plan of expenditures and expenses, organized in two distinct accounts as an account of earnings and receipts derived from the sale of non-financial assets as well as expenditures and expenditures for the acquisition of non-financial assets and as a financing account. The differential between the entire revenue and receipts from the sales of non-financial resources and the total expenditures and costs for the purchase of non-financial resources is the budget surplus, or deficit.

Thus, from the above we can conclude that the correct option is C.

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