The difference between the price the consumer is willing to pay for a good or service and what he would have to pay for that unit is called:
a. the total gains from trading that unit.
b. the gain in producer surplus
c. the gain in consumer surplus.
d. the total surplus.
c
You might also like to view...
Assuming a reserve ratio of 10 percent, if a bank receives $100,000 in deposits how much can the bank loan out?
A) $10,000 B) $90,000 C) $100,000 D) $110,000
The market process is a
A) path to discovery. B) simple process. C) theoretical concept that reveals little useful information. D) none of these choices.
Usury laws are associated with
A. rent. B. interest. C. wages. D. profits.
Recognition lags in fiscal policy stem largely from
A) the fact that it takes time before a fiscal policy, such as a change in government purchases or a change in taxes, is agreed to and put into effect. B) the fact that it takes time for a policy action to have its full effect on aggregate demand. C) the difficulty of collecting economic data in a timely and accurate fashion. D) households and businesses may not respond to fiscal policy to the extent that policy makers had hoped, for example, they may not be as responsive to a tax cut .