The Change in the Total Gain to a Nation from International

question 123

Multiple Choice

The change in the total gain to a nation from international trade is the:

• A)​producer surplus.
• B)​consumer surplus.
• C)​excess of producer surplus over consumer surplus.
• D)​sum of consumer and producer surpluses.

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Definitions:

Revenue Expenditures

Expenses incurred during the normal operation of a business that are expected to be consumed within the same accounting period.

Capital Expenditures

Funds used by a company to acquire or upgrade physical assets such as property, industrial buildings, or equipment.

Net Income

The total profit or loss of a company after all revenues, expenses, and taxes have been accounted for.

Owner's Equity

Owner's equity represents the owner's claim to the assets of a business, calculated as the business's total assets minus its total liabilities.