Which One of the Following Would Be Classified as an Extraordinary

question 155

Multiple Choice

Which one of the following would be classified as an extraordinary item?

• A)Expropriation of property by a foreign government
• B)Losses attributed to a labor strike
• C)Write-down of inventories
• D)Gains or losses from sales of equipment

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Definitions:

Producer Surplus

The difference between the amount producers are willing to accept for a good or service and the actual amount they receive due to higher market price.

Binding Price Ceiling

A government-imposed limit on the price of a product or service that is set below the market equilibrium, leading to shortages and a decrease in supply.

Producer Surplus

The difference between the amount that producers are willing and able to sell a good for and the actual amount they receive due to market price.

Demand

The quantity of a good or service that consumers are willing and able to purchase at various prices during a given time period.