Exhibit 1A-6 Straight Line

question 150

Multiple Choice

Exhibit 1A-6 Straight line
-In Exhibit 1A-6, the slope of straight line A-D is:

• A) positive.
• B) zero.
• C) negative.
• D) variable.

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Definitions:

Input Prices

The costs of raw materials and components required to produce a good or service.

Allocative Efficiency

Occurs when resources are distributed in a way that maximizes the net benefit to society.

Consumer Surplus

The difference between the maximum price a consumer is (or consumers are) willing to pay for an additional unit of a product and its market price; the triangular area below the demand curve and above the market price.

Net Benefit

Net benefit refers to the total positive effects or advantages of a decision or action, minus any costs or negative effects associated with it.