Identify Each Item as an Advantage or Disadvantage of Budgeting

question 144

Multiple Choice

Identify each item as an advantage or disadvantage of budgeting.
-Provides standard for performance evaluation

• A)Advantage
• B)Disadvantage

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Definitions:

Producer Surplus

The difference between what producers are willing to accept for a good or service and the actual price they receive.

Market Price

The market price is the current price at which an asset or service can be bought or sold in a given market.

Consumer Surplus

The difference between the total amount consumers are willing and able to pay for a good or service and the total amount they actually pay.

Willing to Pay

The maximum price at which a consumer values a good or service enough to purchase it.