Voluntary Exchanges Generate

question 119

Multiple Choice

Voluntary exchanges generate:

• A)surplus, leaving both participants better off than they were before.
• B)deadweight loss, leaving both participants worse off than they were before.
• C)deadweight loss, leaving at least one participant worse off than they were before.
• D)a transfer of surplus from one participant to another.

---

Definitions:

Accounts Payable

An accounting entry that represents a company's obligation to pay off a short-term debt to its creditors or suppliers.

Office Equipment

Tangible long-term assets used in the daily operations of an office, including computers, printers, desks, and chairs.

Revenue

The sum of all revenue a company earns from selling products or providing services within a specified timeframe.

Expense

Costs incurred in the process of generating revenue, reflected in the income statement.