Question

If a family planned to spend 370 for food during March but only spent 348, this difference would be referred to as a:

1) surplus
2) deficit
3) budget reduction
4) contribution to net worth

Answer 1

The unspent amount of $22 in the family's food budget for March is considered a surplus since they spent less than what was planned.

Step-by-step explanation:

If a family planned to spend $370 for food during March but only spent $348, the difference of $22 would be referred to as a surplus.

A surplus in budgeting terms means that less was spent than what was allotted or anticipated for that category in the budget. In contrast, a deficit occurs when more is spent than what was planned, leading to a shortfall. Therefore, since the family spent less than they planned, they have a surplus of funds which could potentially be saved or reallocated to other expenses or savings goals.