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, 02:28 PM

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Glen

8 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

9 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

9 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

7 months ago

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

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Jacqueline

7 months ago

D) Government expenditure exceeding government revenue

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Jeannetta

8 months ago

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

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Richelle

8 months ago

A) Government revenues exceeding government expenditure

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Kati

9 months ago

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

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Lynda

9 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

8 months ago

That makes sense, thanks for clarifying.

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Toshia

8 months ago

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

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Paris

8 months ago

Option D is the correct answer for budget deficit.

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Virgilio

9 months ago

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

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Teresita

9 months ago

I think the answer is D.

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Marlon

9 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

8 months ago

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

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Lawrence

8 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

8 months ago

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

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Renea

8 months ago

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

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Nina

8 months ago

D) Government expenditure exceeding government revenue

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Tashia

8 months ago

C) Government revenues creating government expenditure

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Farrah

8 months ago

B) Government expenditure equaling government revenue

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Evangelina

8 months ago

A) Government revenues exceeding government expenditure

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