Let's go through each example to determine which one shows a budget deficit, which occurs when expenditures exceed revenue.
1. [tex]$4 trillion in revenue and $[/tex]3.89 trillion in expenditures:
- Calculation: Revenue - Expenditures = [tex]$4 trillion - $[/tex]3.89 trillion = $0.11 trillion surplus.
- Since revenue is greater than expenditures, this is not a deficit.
2. [tex]$4 trillion in revenue and $[/tex]4.14 trillion in expenditures:
- Calculation: Revenue - Expenditures = [tex]$4 trillion - $[/tex]4.14 trillion = -$0.14 trillion deficit.
- Since expenditures exceed revenue, this is a deficit.
3. [tex]$3.5 trillion in revenue and $[/tex]3.58 trillion in expenditures:
- Calculation: Revenue - Expenditures = [tex]$3.5 trillion - $[/tex]3.58 trillion = -$0.08 trillion deficit.
- Since expenditures exceed revenue, this is a deficit.
4. [tex]$3.5 trillion in revenue and $[/tex]4.75 trillion in expenditures:
- Calculation: Revenue - Expenditures = [tex]$3.5 trillion - $[/tex]4.75 trillion = -$1.25 trillion deficit.
- Since expenditures exceed revenue, this is a deficit.
Upon examining all examples, we observe that:
- Example 1 shows a surplus.
- Examples 2, 3, and 4 all show deficits.
The question asks for "which example shows a budget deficit," and specifically, the correct example, among those provided, which first shows a deficit is:
[tex]$4 trillion in revenue and $[/tex]4.14 trillion in expenditures; because the amount spent exceeds the amount raised in taxes.
So, the correct answer is the second example.
