Macroeconomics: Government Budget and the Economy · Class 12 · CBSE · Commerce Economics
A revenue deficit arises when:
Practice question from Macroeconomics: Government Budget and the Economy (Class 12 · CBSE · Commerce Economics), with the correct answer and a step-by-step solution.
easy · MCQ · Q-25706D
A revenue deficit arises when:
- A.Revenue expenditure exceeds revenue receiptsCorrect answer
- B.Capital expenditure exceeds capital receipts
- C.Total receipts exceed total expenditure
- D.Non-debt capital receipts exceed revenue expenditure
Solution
Revenue deficit = Revenue expenditure − Revenue receipts. It indicates that the government’s revenue receipts are insufficient to meet its revenue expenditure.
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