At Prices Above a Consumer's Willingness to Pay

question 27

Multiple Choice

At prices above a consumer's willingness to pay:

• A) the opportunity cost of buying the good is less than the benefit received from having the good.
• B) the opportunity cost of buying the good is greater than the benefit received from having the good.
• C) the buyer will purchase the good and attempt to resell after receiving due benefit.
• D) the buyer needs more income in order to buy the good.

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Definitions:

Ordinary Annuity

A series of equal payments made at regular intervals, with the first payment occurring at the end of the period.

Deferred Annuity

An insurance contract in which periodic payments begin at some future date, typically used as a retirement savings vehicle.

Ordinary Annuity

An ordinary annuity is a series of equal payments made at the end of consecutive periods over a fixed length of time.

Deferred Annuity

An insurance product that provides for the accumulation of capital on a tax-deferred basis, with payouts commencing at a future date, typically used as a retirement planning tool.