Deficits & Debt Quiz

What is a budget?

• A plan for how you are going to save your money.

• A plan for how you are going to invest your money.

• A plan for how you are going to earn and spend your money.

• A plan for how you are going to donate your money.

What is a budget deficit?

• When the federal government's expenses are more than its tax revenues in a single year.

• When the federal government's expenses are less than its tax revenues in a single year.

• When the federal government's expenses are equal to its tax revenues in a single year.

• When the federal government has no expenses or tax revenues in a single year.

What is a budget surplus?

• When the federal government has no expenses or tax revenues in a single year.

• When the federal government's expenses are equal to its tax revenues in a single year.

• When the federal government's expenses are more than its tax revenues in a single year.

• When the federal government's expenses are less than its tax revenues in a single year.

What is the national debt?

• The sum total of what the government owes its lenders over all time.

• The sum total of what the government owes its citizens in a single year.

• The sum total of what the government owes its citizens over all time.

• The sum total of what the government owes its lenders in a single year.

What did NOT cause the deficit to shrink from 1992-1997?

• End of the Cold War

• Increase in computer/online technology

• Financial meltdown in 2008

What happened in 2008 that affected the national debt?

• End of the Cold War

• Financial meltdown

• Increase in computer/online technology

• Unplanned wars in Afghanistan and Iraq