Consumer surplus is
A. the difference between current market price and full costs of production for the firm.
B. the difference between the maximum a person is willing to pay and full costs of productions for the firm.
C. current market price.
D. the difference between the maximum a person is willing to pay and current market price.
Answer: D
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In a market where firms are successful in convincing their customers that their product is different from their competitors' product but otherwise have no barriers to entry would be best characterized by
A) monopolistic competition. B) a monopoly. C) perfect competition. D) an oligopoly market.
The total amount of taxes paid divided by before-tax income is the
A) median taxpayer rate. B) rate of hysteresis. C) average tax rate. D) marginal tax rate.
A tax is regressive if it takes a
A. Larger number of dollars as income rises. B. Smaller fraction of dollars as income rises. C. Smaller fraction of dollars as income falls. D. Larger number of dollars as income falls.
GDP can be measured as each of the following except:
A. total business revenues. B. total expenditure on final goods and services. C. the market value of production. D. incomes of capital and labor.