Wages of $30 000 Were Paid in June for Work

question 58

Multiple Choice

Wages of $30 000 were paid in June for work done in June;$5000 of wages were owed at end of June for work done in June;and an invoice for $8000 was received for June advertising to be paid in July.What are total expenses for June 2016?

• A) $30 000
• B) $35 000
• C) $43 000
• D) $30 000.

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Definitions:

Producer Surplus

The gap between the minimum amount sellers are prepared to accept for a product or service and the increased amount they actually get because of elevated market prices.

Deadweight Loss

A shortfall in economic efficiency due to a good or service not reaching free market equilibrium.

Total Surplus

The combined value of consumer and producer surplus that signifies the overall advantage to society through the manufacturing and consumption of products or services.

Producer Surplus

The difference between what producers are willing to accept for a good or service versus what they actually receive in the market.