The amount that individuals would have been willing to pay, minus the amount that they actually paid, is called:
a. producer surplus.
b. consumer surplus.
c. total surplus.
d. demand surplus.
b. consumer surplus.
The amount that individuals would have been willing to pay, minus the amount that they actually paid, is called consumer surplus.
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If we observe a decrease in the price of a good and a decrease in the amount of the good bought and sold, this could be explained by a(an):
a. increase in the supply of the good. b. increase in the demand for the good. c. decrease in the demand for the good. d. decrease in the supply of the good.
Which type of unemployment contributes to the natural rate of unemployment?
A. Real-wage unemployment B. Cyclical unemployment C. Unemployment of government workers. D. All of these contribute to the natural rate.
Under international trade we export those goods for which we have a relatively low
A. materials cost. B. wage cost. C. accounting cost. D. opportunity cost.
Which of the following examples would enhance the effectiveness of the Fed’s monetary policy?
a. The Fed wants an expansionary policy; the fiscal policy makers want to raise interest rates. b. The Fed wants a contractionary policy; the fiscal policy makers want to increase exports c. The Fed and fiscal policy makers advocate different ways to deal with a recession. d. The Fed and fiscal policy makers both prioritize curbing inflation.