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WAEC Economics 2002 Question 42

Question 42

Public Finance

Budget surplus implies that

  1. A.expenditure equals revenue.
  2. B.expenditure is less than revenue.
  3. C.expenditure is greater than taxation.
  4. D.direct tax is more than indirect tax.
Show the answer and explanation

Answer: B (expenditure is less than revenue.)

Explanation

A surplus budget plans to collect more revenue than it spends.