CIPS Exam A6 Topic 4 Question 63 Discussion

Actual exam question for CIPS's A6 exam

Question #: 63
Topic #: 4

[All A6 Questions]

Which of the following best describes the economic term 'budget deficit'? (2 marks)

AGovernment revenues exceeding government expenditure

BGovernment expenditure equaling government revenue

CGovernment revenues creating government expenditure

DGovernment expenditure exceeding government revenue

Show Suggested Answer

Suggested Answer: D

by Clay at Sep 19, 2024, 03:28 PM

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Glen

11 months ago

Ah, the old 'government expenditure exceeding revenue' trick. Classic budget deficit. D is the way to go, folks.

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Leonida

11 months ago

Haha, this question is a real budget-buster! I'm just glad I don't have to balance the government's books. But seriously, I'm going with D.

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Curt

11 months ago

Hmm, I don't know. I was thinking it could be A, where the government revenues exceed the expenditure. Isn't that also considered a budget deficit?

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Yuki

10 months ago

Oh, I see. So, it's when the government spends more than it earns. Thanks for clarifying!

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Jacqueline

10 months ago

D) Government expenditure exceeding government revenue

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Jeannetta

11 months ago

I think you might be mistaken. A budget deficit actually occurs when government expenditure exceeds government revenue.

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Richelle

11 months ago

A) Government revenues exceeding government expenditure

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Kati

11 months ago

I'm not sure, but I think it's D too. It just makes sense that way.

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Lynda

11 months ago

I was thinking the same thing! Option D is the only one that makes sense in terms of a budget deficit.

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Alishia

11 months ago

That makes sense, thanks for clarifying.

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Toshia

11 months ago

I agree, it means government spending more than they bring in.

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Paris

11 months ago

Option D is the correct answer for budget deficit.

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Virgilio

11 months ago

I agree with Teresita, budget deficit means government spending more than they earn.

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Teresita

11 months ago

I think the answer is D.

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Marlon

11 months ago

D definitely seems like the correct answer. I mean, if the government is spending more than it's bringing in, that's a budget deficit, right?

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Thaddeus

10 months ago

Exactly. It can lead to borrowing or other measures to cover the deficit.

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Lawrence

10 months ago

So, it's basically when the government is in debt because it's spending more than it's making?

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Ailene

10 months ago

That's right. A budget deficit occurs when there is a shortfall in revenue compared to expenditure.

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Renea

10 months ago

Yes, D is correct. It means the government is spending more than it's bringing in.

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Nina

10 months ago

D) Government expenditure exceeding government revenue

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Tashia

10 months ago

C) Government revenues creating government expenditure

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Farrah

10 months ago

B) Government expenditure equaling government revenue

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Evangelina

11 months ago

A) Government revenues exceeding government expenditure

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