Consumer surplus is
a. the amount by which quantity supplied exceeds quantity demanded at the current market price
b. the amount by which quantity demanded exceeds quantity supplied at the current market price
c. the change in total utility derived from a one-unit change in the consumption of a good
d. the difference between the price of the good paid by the consumer and the costs of production to the seller
e. the difference between the maximum amount that a consumer is willing to pay for a given amount of a good and the amount that the consumer actually pays
E
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The individual mandate provision of the ACA requires
A) every employed person to pay for his or her own health insurance. B) every U.S. resident to have health insurance. C) every U.S. company to provide health insurance to its employees. D) every private insurance company to provide free health care to its current policy holders.
Combinations of goods on the production possibilities frontier
a. are unattainable without additional resources b. can be produced using currently available resources and technology c. reflect minimum normative value allocations d. will meet society's needs but not its wants e. are attainable only through international trade
Firms that spend the greatest percentage of their revenue on advertising tend to be firms that sell
a. industrial products. b. homogeneous products. c. consumer goods for which there are no close substitutes. d. highly-differentiated consumer goods.
Write down your understanding and interpretation for each of the following equations, then make sure that you familiarize yourself with these formulas: I = NS + KI
What will be an ideal response?