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CAIE A-Level Economics AS 5.2.2 Budget Deficit and Surplus Questions

Practise distinguishing government budget deficits from surpluses by comparing public revenue and expenditure in CAIE Economics AS questions.

Syllabus
2026–2028
Course
Economics 9708
Level
AS

Exam points

  • Distinguish a government budget deficit from a government budget surplus by comparing public revenue with public expenditure.

CAIE A-Level Economics AS 5.2.2 Budget Deficit and Surplus Questions question 1

[Maximum number: 1]

Which statement about government budget surpluses and deficits is the most accurate?

A

A surplus implies that the balance of payments is in surplus.

B

A surplus implies that the government is spending too much money.

C

A deficit implies that the economy is in decline.

D

A deficit implies that the national debt is increasing.

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