Question

question 7 (multiple choice worth 4 points)

which pair has examples of a balanced budget at the personal and national levels?

arthur budgeted $100 for expenses and spent $75. a government agency budgets $8,000 for the year and spends $9,000.

elise spent $300 on a new phone after earning $200. a government agency has to let go of staff after a budget shortfall.

jessica spends exactly as much as she makes. a government agency budgets $20,000 for the year and spends $20,000.

harvey saves some money each month to buy a car. the government sets money aside to fund a future project.

Explanation:

Define balanced budget

A balanced budget occurs when total revenues or income equal total expenditures or spending.

Evaluate the options

• Option 1: Arthur budgeted \$100 and spent \$75 (surplus). The government agency budgeted \$8,000 and spent \$9,000 (deficit).
• Option 2: Elise spent \$300 after earning \$200 (deficit). The government agency has a budget shortfall (deficit).
• Option 3: Jessica spends exactly as much as she makes (balanced). The government agency budgets \$20,000 and spends \$20,000 (balanced).
• Option 4: Harvey saves money (surplus). The government sets money aside (surplus/savings).

Select the correct pair

Option 3 correctly identifies balanced budgets at both levels because spending equals income/budgeted amounts.

Answer:

• (A) Arthur budgeted $100 for expenses and spent $75. A government agency budgets $8,000 for the year and spends $9,000.
• (B) Elise spent $300 on a new phone after earning $200. A government agency has to let go of staff after a budget shortfall.
• (C) Jessica spends exactly as much as she makes. A government agency budgets $20,000 for the year and spends $20,000. (Correct answer)
• (D) Harvey saves some money each month to buy a car. The government sets money aside to fund a future project.