Use the Following Figure to Answer the Question : Figure

question 2

Multiple Choice

Use the following figure to answer the question : Figure 19-1 :
,the curve TT shows how the allocation of a resource affects the well-being of two individuals,Hank and Monica.
-Refer to Figure 19-1.Which of the following would represent a movement from an inefficient allocation of resources to an efficient allocation of resources?

• A)A movement from point E to point A
• B)A movement from point C to point B
• C)A movement from point B to point D
• D)A movement from point A to point B

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Definitions:

Cost of Merchandise Sold

The total cost of goods that have been sold during a specific period, including purchase price, transportation, and handling charges, less any discounts or allowances.

Cash Payment

The act of settling a debt or paying for goods or services with cash or equivalent instruments, such as checks.

Direct Method

A way of preparing the cash flow statement where actual cash flow information from operating activities is used instead of adjustments to net income.

Revenues

income that a business receives from its normal business activities, usually from the sale of goods and services to customers.