With a Quota,the __________ Is Greater Than the __________

question 83

Multiple Choice

With a quota,the __________ is greater than the __________.

• A) loss in producers' surplus; gain in consumers' surplus
• B) loss in consumers' surplus; loss in producers' surplus plus higher total revenues on the imported goods
• C) loss in producers' surplus plus higher total revenues on the imported goods; consumers' surplus
• D) tax; revenue
• E) quota-determined price; quota-determined output

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Definitions:

Variable Overhead Rate Variance

The variance between the actual variable overhead costs that were incurred and the anticipated variable overhead calculated according to the real amount of activity.

Supplies Cost

The expense incurred to acquire supplies necessary for the production of goods or the operation of a business.

Variable Overhead Efficiency Variance

The difference between the actual variable overhead costs incurred and the expected variable overhead costs based on standard cost accounting practices.

Direct Labor-hours

The whole amount of production time by workers intimately involved in manufacturing.