Which of the Following Statements Best Describes the Concept of Consumer

question 179

Multiple Choice

Which of the following statements best describes the concept of consumer surplus?

• A)"Safeway was having a sale on Dreyer's ice cream so I bought 3 quarts."
• B)"I was all ready to pay $300 for a new leather jacket that I had seen in Macy's but I ended up paying only $180 for the same jacket."
• C)"I paid $130 for a printer last week. This week the same store is selling the same printer for $110."
• D)"I sold my Blu-ray copy of Ben-Hur for $18 at a garage sale even though I was willing to sell it for $10."

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Definitions:

Reserve Requirement

The minimum fraction of customer deposits and notes that each commercial bank must hold as reserves rather than lending out, set by the central bank.

Demand Deposits

Bank accounts from which money can be withdrawn at any time without any notice to the institution.

Time Deposits

Banking or financial instruments that require the holder to keep the money deposited for a fixed term or period of time, often offering higher interest rates than savings accounts.

Federal Reserve Banks

A system of 12 banks in the United States that serve as the central banking system, responsible for implementing monetary policy, regulating banks, and ensuring the stability of the financial system.