GED Social Studies : Credit and Debt

Study concepts, example questions & explanations for GED Social Studies

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Example Questions

Example Question #1 : Credit And Debt

In economics, a deficit is best described as __________

Possible Answers:

the balance of trade between two nations.

when expenditures exceed revenue in a given period of time.

a situation in which supply greatly outstrips demand.

the amount of money set aside to fulfill government policy aims in a given period of time.

a situation where demand greatly outstrips supply.

Correct answer:

when expenditures exceed revenue in a given period of time.

Explanation:

In economics, a deficit occurs when the amount of money being spent (expenditures) exceeds the amount of money being collected (revenue) over a given period of time.

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