Producer Surplus Directly Measures

question 40

Multiple Choice

Producer surplus directly measures

• A)the well-being of sellers.
• B)production costs.
• C)excess demand.
• D)unsold inventories.

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Definitions:

Need for Closure

The desire to find an answer or to come to a decision quickly in order to alleviate uncertainty and ambiguity.

Ambiguity

The presence of uncertainty or vagueness in meaning in expressions or situations.

Need for Cognition

A psychological tendency to engage in and enjoy effortful cognitive activities.

Effortful Thinking

The process of engaging in mental activities that require significant cognitive resources, as opposed to automatic or effortless thinking.