A Surplus Occurs When the Actual Selling Price Is Above

question 210

True/False

A surplus occurs when the actual selling price is above the market equilibrium price.

Recognize the factors that shift the long-run aggregate supply curve and their implications for the economy.

Understand the concept and importance of a proxy in financial decisions.

Calculate and interpret the current share price of a company based on its dividend growth.

Determine and apply the concept of intrinsic value of a share based on free cash flow and dividend growth models.

---

Definitions:

Deferred Tax Asset

An accounting term representing an asset that may be used to reduce any future tax liability originating from temporary timing differences between the accounting and tax treatment of transactions.

Deferred Tax Liability

Future tax obligations due to temporary differences between the accounting and tax treatment of transactions.

Tax Basis

The value of a taxpayer's investment in property for tax purposes, used to calculate gain or loss on a sale or transfer.

Tax Rate

The proportion of income or corporate profits charged by the government as tax.