O Levels Economics (2281)•2281/12/O/N/18

Explanation
Government Budget Balance
Steps:
- Identify the context: The phrase "balance its" likely refers to a government's budget in economics.
- Recall definition: A balanced budget occurs when revenues match expenditures.
- Evaluate choices: Match against economic principles of fiscal policy.
- Select best fit: Option C directly aligns with budget equilibrium.
Why C is correct:
- A balanced budget means total government income (revenues from taxes, etc.) equals total expenditure, as defined in public finance where Income = Expenditure.
Why the others are wrong:
- A: Equal taxation of goods and services describes uniform tax policy, not budget balance.
- B: Equal regional growth refers to balanced economic development, unrelated to fiscal balance.
- D: Equal exports and imports define trade balance, a separate concept from government budget.
Final answer: C
Topic: Fiscal policy
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