The Equivalent Variation Resulting from a Quota Is Best Defined

question 39

Multiple Choice

The Equivalent Variation resulting from a quota is best defined as

• A)the amount a consumer would pay to have the quota removed.
• B)the amount the consumer would need to voluntarily accept the quota.
• C)the amount a consumer would pay for the quantity specified by the quota.
• D)the loss in utility resulting from the quota.

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Definitions:

Retained Earnings Account

An equity account that represents the accumulated portion of net income that a company has decided to keep and reinvest in the business rather than distribute to shareholders as dividends.

Permanent Account Balances

Permanent account balances are those balances in accounts that are carried over into the next accounting period, including assets, liabilities, and equity accounts.

Post-closing Trial Balance

A listing of all permanent accounts and their balances after closing entries have been made, serving as a check to ensure that debits equal credits.