Total Surplus Is

question 117

Multiple Choice

Total surplus is:

• A)the difference between price and the cost to the seller.
• B)the sum of consumer and producer surplus.
• C)equal to the area below the demand curve.
• D)always more for consumers than producers.

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Definitions:

Deferred Tax Liability

A tax obligation that arises when taxable income will be higher in future periods due to temporary differences in accounting methods.

Tax Effect

The impact financial transactions have on the amount of tax payable by an individual or corporation.

Revaluation

The process of adjusting the book value of a company's assets to reflect their current market values