A Budget Is

question 130

Multiple Choice

A budget is

• A)a planning tool.
• B)a control tool.
• C)a means of communicating goals to the firm's divisions.
• D)all of the above.

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Definitions:

Producer Surplus

The difference between what producers are willing and able to supply a good for and the actual price they receive, measuring the benefit to producers from market transactions.

Deadweight Loss

The decline in economic productivity due to the failure to achieve or the impossibility of achieving equilibrium for a specific good or service.

Profit per Unit

The financial gain obtained on each unit sold, calculated by subtracting the cost per unit from the selling price per unit.

Demand Curve

A graph showing the relationship between the price of a good and the quantity of that good consumers are willing to purchase at various prices.