The Measure of Society's Benefits Due to a Market Transaction

question 298

Multiple Choice

The measure of society's benefits due to a market transaction is called

• A) consumer surplus.
• B) deadweight loss.
• C) producer surplus.
• D) total surplus.

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Definitions:

Dividends Payable

A liability on a company's balance sheet that indicates the amount of dividends it owes to shareholders, to be paid out in the future.

Cash Flow Statement

A financial statement that summarizes the amount of cash and cash equivalents entering and leaving a company.

Operating Activities

Generally speaking, activities that affect current assets, current liabilities, or net income.

Investing Activities

Transactions involving the purchase and sale of long-term assets and other investments not considered cash equivalents.