Exhibit 4-8 -Refer to Exhibit 4-8. Suppose That Wheat Producers Lobby the Wheat

question 45

Multiple Choice

Exhibit 4-8

-Refer to Exhibit 4-8. Suppose that wheat producers lobby the government for a price floor and receive one. This price floor is set at P_F. What is the change in the total surplus at the price floor,compared to at the equilibrium price?

• A) There was a gain in total surplus equal to (area 1 + 2 + 3)
• B) There was a gain in total surplus equal to (area 1 + 2 + 3 + 4 + 5)
• C) There was a loss in total surplus equal to (area 4 + 5)
• D) There was a loss in total surplus equal to (area 4 + 5 + 6 )

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Definitions:

Form 20-F

A form used by foreign companies to report their financial performance and operational activities to the U.S. Securities and Exchange Commission.

Annual Report

A comprehensive report on a company's activities and financial performance throughout the preceding year.

U.S. Stock Exchange

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Comparability Differences

Variations that arise when comparing financial information due to different accounting policies or frameworks.