If an Allocation of Resources Is Efficient, Then

question 174

Multiple Choice

If an allocation of resources is efficient, then

• A)consumer surplus is maximized.
• B)producer surplus is maximized.
• C)all potential gains from trade among buyers are sellers are being realized.
• D)the allocation achieves equality as well.

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Definitions:

Posting

The process of recording financial transactions in the accounting books, such as a ledger or journal.

Source Documents

Original records that contain the details necessary to support the transactions entered in an accounting system, such as invoices, receipts, or contracts.

Ledger

A ledger is a comprehensive collection of a company's financial transactions, organized by account, during an accounting period.

Journalized

The process of recording financial transactions in a journal or the book of original entry.