______________ Represents Payment That Is Made Above the Amount Required

question 15

Multiple Choice

______________ represents payment that is made above the amount required for the producers to be willing to supply a specific amount of a commodity to the market.

• A)Producer surplus
• B)Consumer surplus
• C)Revenue effect
• D)Import tariff

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Definitions:

Carry Forward

A provision that allows individuals or businesses to apply current year losses, credits, or deductions to future tax years, to reduce taxable income.

Corporation

A legal entity that is separate and distinct from its owners, capable of owning property, entering contracts, and being sued.

Income Tax Payable

The amount of income tax a company owes to the government but has not paid by the end of the period.

Prepaid Asset

An asset on the balance sheet representing goods or services paid for in advance, which are to be consumed in future accounting periods.