The Lower the Price, the Lower the Consumer Surplus, All

question 128

True/False

The lower the price, the lower the consumer surplus, all else equal.

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Definitions:

GNP

Gross National Product; the total value of goods produced and services provided by a country during one year, plus the net income from foreign investments.

GDP

Gross Domestic Product, which is the total value of all goods and services produced within a country's borders in a specific time period.

Households

Economic units consisting of all persons who occupy a dwelling, which make decisions on consumption, savings, and investments.

Firms

Business organizations that use resources to produce goods or services for sale with the aim of making a profit.