Consumer surplus
a. is the amount of a good that a consumer can buy at a price below equilibrium price.
b. is the amount a consumer is willing to pay minus the amount the consumer actually pays.
c. is the number of consumers who are excluded from a market because of scarcity.
d. measures how much a seller values a good.
b
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The text's discussion of the airline industry, the soft drink industry, and the doughnut industry reveals a common theme when it comes to the types of competitive practices firms in each industry engage in
What is it and what advantage does it offer firms?
A movement along a demand curve may be caused by a change in
A) the non-price determinants of demand. B) the change in consumer expectations. C) the change in demand. D) the change in supply.
Continuing resolutions are: a. budget agreements that allow agencies, in the absence of an approved budget, to spend at the rate of the previous year's budget. b. guaranteed benefits for those who qualify for government transfer programs such asSocial Security and Medicare
c. agreements about total outlays, spending by major category, and expected revenues of the federal government. d. budget resolutions that allow the federal government to allocate a fixed proportion of yearly outlays toward military related expenditures. e. legislative actions undertaken to balance the budget.
If the marginal benefit were greater than the cost of a good:
A. consumers could increase their utility by buying more. B. consumers could increase their utility by buying less. C. producers should decrease production. D. social net benefit would be maximized.