Consumer Surplus

question 97

Multiple Choice

Consumer surplus

• A)is the amount of a good that a consumer can buy at a price below equilibrium price.
• B)is the amount a consumer is willing to pay minus the amount the consumer actually pays.
• C)is the number of consumers who are excluded from a market because of scarcity.
• D)measures how much a seller values a good.

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Definitions:

Trial Balance

A bookkeeping report that lists the balances in each of an organization's general ledger accounts at a specific time.

General Ledger

The primary accounting record of a company that contains all the financial accounts and transactions of a business.

Total Credits

The total value of all credit entries recorded in an accounting period, representing income or liabilities.

Post-Closing Trial

A trial balance prepared after all closing entries are made, serving to test the equality of debits and credits as a final check at the end of an accounting period.