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This diagram shows a government’s budget.

Which of the following words can best be applied to this budget?

unbalanced
balanced
deficit
surplus

This diagram shows a government’s budget. Which of the following words can best be-example-1

2 Answers

5 votes
the answer is b-balanced
User Roman Nurik
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2 votes

The correct answer is: "balanced".

Assuming that the size of the boxes representsthe sizes of the revenues generated by a state and of its expenditures, as the two sizes are equal then the budget is balanced, because revenue=expenditure.

If these two sizes were not equal then the budget would be unbalanced, and two options could be possible:

  • Deficit: expenditure > revenue
  • Surplus: revenue > expenditure
User Ballack
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7.0k points