4
lesson pretestMultiple Choice

Pretest

Question 4 • CMS 2026-2027 Economics and Personal Finance CREDIT RECOVERY

When revenues are higher than expenditures in a budget, that budget

Answer
A
shows a deficit.
B
must be discarded.
C
is in balance.
D
shows a surplus.

Explanation

A budget has a surplus when its revenues exceed its expenditures. Since the budget brings in more money than it spends, it shows a surplus, not a deficit or a balance.

AI-written and checked against the verified answer.

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