For Good A,the Supply Curve Is the Typical Upward-Sloping Straight

question 335

Multiple Choice

For good A,the supply curve is the typical upward-sloping straight line,and the demand curve is the typical downward-sloping straight line.When good A is taxed,the area on the relevant supply-and-demand graph that represents the deadweight loss is

• A) larger than the area that represents consumer surplus in the absence of the tax.
• B) larger than the area that represents government's tax revenue.
• C) a triangle.
• D) All of the above are correct.

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Definitions:

Operating Results

The outcome of an entity's operational activities, typically reflected in its income statement.

Disclosure Standard

Refers to guidelines or regulations that dictate the information a company must make available to shareholders and the public to ensure transparency.

Measurement Standard

Principles and rules that determine the method and basis of measuring and presenting financial information and values in financial statements.

Operating Results

The financial outcomes derived from a company's regular, core business operations, excluding any extraordinary items or revenues from investments.