AP®︎ Macroeconomics: Topic 5.4 Practice Test
Prepare for your quiz, test, or the AP exam with focused practice questions on Topic 5.4 of AP Macroeconomics – Government Deficits and the National Debt.
Questions List
Topic 5.4
Question 1 Easy
This question tests the following: POL-3.B.1
What does a government budget surplus indicate?
What You’re Being Tested On:
Explore the learning objectives taken directly from the College Board’s AP® Macroeconomics Curriculum. Ensure you’re prepared for the exact topics covered on the AP® exam, in-class tests, and quizzes, and gain confidence in your mastery of the material.
Topic 5.4: Government Deficits and the National Debt
Learning Objective: POL-3.B
a. Define the government budget surplus (deficit) and national debt. b. Explain the issues involved with the burden of the national debt.
Essential Knowledge: POL-3.B.1
The government budget surplus (deficit) is the difference between tax revenues and government purchases plus transfer payments in a given year.
Essential Knowledge: POL-3.B.2
A government adds to the national debt when it runs a budget deficit.
Essential Knowledge: POL-3.B.3
A government must pay interest on its accumulated debt, thus increasing the national debt and increasingly forgoing using those funds for alternative uses. [See also LO POL-3.C on crowding out.]
