Question

In the country of Econoville, tax revenue collected by the government this year is $15 million, and government outlays are $12 million. This country currently has a Choose one: A. budget deficit of $27 million. B. budget deficit of $3 million. C. budget surplus of $3 million.

Answer 1

The correct option is C

Step-by-step explanation:

The budget will be in surplus when the government outlays or the expenditure is less than or does not exceed the revenue collected by the government. So, in this case,

Government revenue is $15 million

Government Outlays is $12 million

Which states the revenue is more than outlays so it is situation of surplus and the surplus amount is $3 million ($15 - $12).