Question

The budget in which government’s total planned spending is equal to total planned revenue is referred to as __________ budget.

(Choose the correct alternative to fill in the blank)

• A. Surplus
• B. Deficit
• C. Micro
• D. Balanced

Hint:

When planned spending equals planned revenue, the budget is balanced. Surplus and deficit budgets have unequal amounts.

Answer 1

The Correct Option is D

Step 1: Understand the question:
A government budget compares planned spending with expected revenue.
We need the name for the budget in which the two are equal.

Step 2: Check (A) Surplus:
A surplus budget has planned revenue more than planned spending. It does not fit.

Step 3: Check (B) Deficit:
A deficit budget has planned spending more than planned revenue. It does not fit.

Step 4: Check (C) Micro:
Micro is not a type of government budget. It describes small-scale economics. It does not fit.

Step 5: Check (D) Balanced:
In a balanced budget, planned spending equals planned revenue. This matches the definition.

Final Answer:
The budget is called a balanced budget. The correct option is (D). \[ \boxed{(D)} \]