The Scale MOST Often Used to Compare Economic Performance in Other

question 122

Multiple Choice

The scale MOST often used to compare economic performance in other years is:

• A) the circular-flow diagram.
• B) real GDP.
• C) the business cycle.
• D) fiscal policy.

---

Definitions:

Producer Surplus

Producer surplus is the difference between the amount producers are willing to accept for a good or service and the amount they actually receive, measured by the area above the supply curve and below the market price.

Market Demand

The total quantity of a good or service that all consumers in a market are willing and able to purchase at various prices.

Market Supply

The total quantity of a good or service available for purchase at any given price level in a given market.

Price Floor

A government or regulatory-imposed minimum price set above the equilibrium price, preventing the market price from falling below it.