Figure 8-3 the Vertical Distance Between Points a and B Represents a Represents

question 88

Multiple Choice

Figure 8-3
The vertical distance between points A and B represents a tax in the market.
-Refer to Figure 8-3. As a result of the tax, consumer surplus decreases by

• A)$130, producer surplus decreases by $170, tax revenue is $240, and deadweight loss is $60.
• B)$150, producer surplus decreases by $150, tax revenue is $240, and deadweight loss is $60.
• C)$160, producer surplus decreases by $160, tax revenue is $240, and deadweight loss is $80.
• D)$240, producer surplus decreases by $240, tax revenue is $400, and deadweight loss is $80.

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Definitions:

General Journal

A primary accounting record used to record all types of transactions before they are posted to the specific accounts in the ledger.

General Ledger

The main accounting record of a business that uses double-entry bookkeeping, which contains all the financial accounts and transactions of the company.

Subsidiary Ledgers

Detailed records that contain information about specific accounts, such as accounts receivable or payable, that support the summarized data in the general ledger.

Sales Invoice

A paper provided by the seller to the buyer that outlines the goods or services offered, the total due, and the conditions of payment.