Consumer Surplus Is

question 6

Multiple Choice

Consumer surplus is

• A)the sum of the marginal values to the consumer.
• B)the total value that a consumer receives from the purchase of a particular good.
• C)a measure of the gains that a consumer forgoes by buying this product rather than another.
• D)the difference between what the consumer is willing to pay for all the units consumed and what he or she actually paid.
• E)the consumption of a commodity above and beyond the amount required by the consumer.

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Definitions:

Actor-Observer Bias

A cognitive bias involving the tendency to attribute one's own actions to external factors while attributing others' actions to their personality or disposition.

Cognitive Dissonance

A psychological phenomenon that occurs when an individual experiences discomfort due to holding conflicting beliefs or values.

Defensive Attributions

Cognitive processes used to deflect blame from oneself and to prevent feelings of guilt or inadequacy, often by assigning responsibility to external factors.

Self-Serving Bias

A common tendency to attribute success to personal characteristics and failures to external factors for self-enhancement.