The answer is A. Topic: Budget Surplus and Deficit Skill: Recognition 15) A budget surplus occurs when government A) expenditure exceeds tax revenue. A primary budget surplus happens when interest payments on outstanding debt are not included in the government’s total expenditure. A budget surplus occurs when there is more income than expenses. Individuals prefer to call a surplus “savings.” When the economy is doing well, there is less demand for government services since more people are employed.When a government creates a surplus, whether, at the federal, state, or local level, citizens will often call for taxes to be lowered. It occurs when spending is lower than income. B)tax revenues equal outlays. b. occurs when tax revenues exceed government expenditures. It is generating more revenues than expenses and therefore has money left over. A federal budget surplus occurs when: a.federal government net taxes exceed purchases. Budget surplus = Government’s total income – Government’s total expenditure. e. occurs when government expenditures exceed tax revenues. C. is a balanced budget. A water budget is a specified amount of water that can be consumed by a particular region. 1 decade ago. A budget surplus is appropriate when the economy is in the growth phase of the economic cycle. 111 Congress Ave Suite 1000 Austin, TX 78701. b. causes government debt to increase. Inflation occurs when too much money is chasing few resources, being goods and services. Budget Surplus Definition A budget surplus occurs when tax revenue is greater than government spending.With a budget surplus, the government can use the surplus revenue to pay off public sector debt.. BUDGET SURPLUS When the actual amount of cash a business receives is greater than the amount that it had planned to receive in the budgeting process, the business is said to have a cash surplus. A budget surplus occurs when you have more money than what to spend it on. A balanced budget occurs when money collected is the same as money spent. Therefore, it is better to wait until the economy recovers, and automatic fiscal stabilisers improve (higher growth automatically leads to higher income tax revenues), Cracking Economics The government strives to operate at neither a deficit or surplus budget in order to keep the federal government. b) occurs when tax revenues exceed government expenditures. In a recession, demand is depressed, and it is expected to have a budget deficit. Source(s)::-) 1 0. 1 decade ago. The value of the investment may fall as well as rise and investors may get back less than they invested. A budget surplus a. occurs when monetary policy works in the opposite direction of fiscal policy. c. occurs when the government has debt equal to zero. Investing in alternative assets involves higher risks than traditional investments and is suitable only for sophisticated investors. 2. - tax revenues equal social security expenditures. A budget surplus occurs when a government is running efficiently. Not all of services referenced on this site are available in every state and through every representative listed. d. reduces the government's debt. Including debt interest payments the budget was broadly balanced – zero borrowing or surplus. This shows that in the 1920s, the UK was running a large primary budget surplus. Alternative investments are often sold by prospectus that discloses all risks, fees, and expenses. c. is an impossibility. Sectoral balances analysis shows that as a matter of accounting, government budget deficits add net financial assets to the private sector. A deficit occurs when the government spends more than it taxes; and a surplus occurs when a government taxes more than it spends. 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