Correct Answer: A balanced budget has equal spending and revenue, while a surplus budget has more revenue than spending

Solution : The correct answer is (a). A balanced budget has equal spending and revenue, while a surplus budget has more revenue than spending.

A balanced budget refers to a situation where a government's spending equals its revenue. In other words, the government's expenses are completely covered by the revenue it receives from various sources, such as taxes, fees, and other income. A balanced budget ensures that there is no deficit or shortfall in funding the government's operations and obligations.

It's important to note that both a balanced budget and a surplus budget reflect a financially favorable situation for the government, as they indicate that revenue is at least equal to, or greater than, spending. These terms are often used in discussions about fiscal policy and government financial management.