Question

If the state of Washington's government collects $75 billion in tax revenues in 2013 and total spending in the same year is $74.8 billion, the result will be a________.

A. budget deficit.
B. budget surplus.
C. decrease in payroll tax.
D. decrease in proportional taxes.

Answer 1

Answer:

option (B) Budget surplus

Explanation:

Data provided in the question:

Tax revenues in 2013 collected by state of Washington's government

=  $75 billion

Total spending in the year 2013 = $74.8 billion

Now,

The difference of Tax revenues and the Total spending

= $75 billion - $74.8 billion

= $0.2 billion

Here,

The positive value of the difference means that the amount spent is less, therefore more revenue (i.e budget )is left

Hence,

The answer will be option (B) Budget surplus