Correct Answer: When government revenue is greater than government spending

Solution : The correct answer is (a). A government surplus occurs when government revenue is greater than government spending.

A government surplus is a financial situation where the government's total revenue from taxes, fees, and other sources exceeds its total expenditures in a given period, typically a fiscal year. It means that the government is collecting more money than it is spending, resulting in a positive balance.

A government surplus can have several implications. It can be an indicator of a healthy and well-managed economy, as it suggests that the government is generating more revenue than it requires for its current expenditures. Surpluses can be used to reduce debt, invest in infrastructure, fund future projects, or be saved for future contingencies.