Consumer surplus is the cumulative difference between:
A. consumers' incomes and consumers' expenditures.
B. the suggested retail price and the price consumers actually pay.
C. the amount consumers are willing to pay and the price they actually pay.
D. consumers' savings and consumers' expenditures.
Answer: C
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a. the difference between positive and normative economics. b. the fallacy of composition. c. that association is not causation. d. the law of unintended consequences.
Suppose the price of the good is $175. If the firm produces and sells 515 units of output, its total revenue is:
a. $75,250. b. $84,500. c. $90,125. d. $100,525.
During a recession, unemployment
a. increases b. decreases. c. is equal to the natural rate of unemployment. d. is frictional unemployment minus structural unemployment.
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A.) Money held in a checking account. B.) A computer used by a lawyer to prepare legal documents. C.) Investment in training for employees in an accounting firm. D.) The executive producer of a new adventure movie.