Which of the following best defines consumer surplus?
a. the amount that individuals actually paid, minus the amount that they would have been willing to pay
b. the amount that a seller is paid for a good minus the seller’s actual cost
c. the amount that individuals would have been willing to pay, minus the amount that they actually paid
d. when it is impossible to improve the situation of one party without imposing a cost on another
c. the amount that individuals would have been willing to pay, minus the amount that they actually paid
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If there is excess demand in a market, then this suggests that:
A. the market price is above the equilibrium price. B. there is an opportunity for mutually beneficial trades. C. there is no way to help some people without harming others. D. the market is in equilibrium.
The overall decline in death rates in the United States since 1981 was due to all of the following except
A) new surgical techniques. B) a decline in smoking. C) the decline in the population. D) the availability of new prescription drugs.
Factors that shift the AD Curve include ________
A) the inflation rate B) aggregate output C) taxes D) all of the above E) none of the above
Refer to the information provided in Table 33.4 below to answer the question(s) that follow. Table 33.4GermanyChileBeerWineBeerWine(cases)(cases)(cases)(cases)75030 060152412453018 24304512 361560 6 48075 0 60 Refer to Table 33.4. In Chile, the opportunity cost of 1 case of wine is
A. 1/2 case of beer. B. 1 case of beer. C. 2 cases of beer. D. 4 cases of beer.