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WAEC Economics 2012 Objective — Question 43

Question 43 of 49 from the West African Examinations Council (WAEC) Economics 2012 Objective paper, with the correct answer and a full explanation.

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A situation in which the estimated government revenue is less than the proposed expenditure for a given year can be described as

  • A. surplus budgeting
  • B. supplementary budgeting
  • C. balanced budgeting
  • D. deficit budgetingCorrect

Explanation

The difference between revenue and expenditure that revenue determines whether the budget is a surplus budget or deficit budget. Since the revenue exceeds the expenditure, it is a surplus budget.

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