AP DSC School Assistant Social Studies Model Test 2

Concept:Revenue deficit occurs when the government’s day-to-day spending exceeds its regular income.Explanation:Revenue deficit = Revenue expenditure – Revenue receipts.It shows the shortfall in covering routine expenses from regular earnings.A positive revenue deficit means the government must borrow for recurring costs.From the options, the correct condition is $Revenue expenditure > Revenue receipts$.Answer:C. $Revenue expenditure > Revenue receipts$