Consumer Surplus Is

question 8

Multiple Choice

Consumer surplus is

• A)equivalent to value in use.
• B)equivalent to value in exchange.
• C)the difference between total expenditure and what consumers have to pay per unit.
• D)total expenditure divided by the price per unit.
• E)the difference between what consumers would be willing to pay and what they have to pay.

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Definitions:

Time Value Of Money

The idea that money in hand now is more valuable than the same amount in the future because of its ability to generate earnings.

Liquidity Bias

A preference or bias for investments that can be quickly converted into cash without significant loss in value.

Arbitrary Cut-Off

A subjective or chosen without any specific standard or rule, end point or threshold.

Market Rate Of Return

The average rate of return anticipated from an investment based on its risk level, historical market performance, and economic conditions.