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

1 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

1 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

1 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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Jacqueline

2 days ago

D) Government expenditure exceeding government revenue

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Jeannetta

23 days ago

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

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Richelle

30 days ago

A) Government revenues exceeding government expenditure

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Kati

1 months ago

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

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Lynda

1 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

24 days ago

That makes sense, thanks for clarifying.

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Toshia

27 days ago

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

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Paris

30 days ago

Option D is the correct answer for budget deficit.

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Virgilio

2 months ago

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

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Teresita

2 months ago

I think the answer is D.

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Marlon

2 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

9 days ago

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

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Lawrence

10 days 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

10 days ago

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

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Renea

12 days ago

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

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Nina

14 days ago

D) Government expenditure exceeding government revenue

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Tashia

15 days ago

C) Government revenues creating government expenditure

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Farrah

20 days ago

B) Government expenditure equaling government revenue

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Evangelina

30 days ago

A) Government revenues exceeding government expenditure

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