Consumer's Surplus Is a Measure of How Much

question 1

Multiple Choice

Consumer's surplus is a measure of how much

• A)less than his income a consumer spends on goods.
• B)more utility a consumer receives from his purchases than he has to pay for them.
• C)a consumer's marginal utility differs from his total utility.
• D)a change in price induces a consumer to substitute other goods.

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Definitions:

Capital Investment

Funds spent by a company to acquire or upgrade physical assets, such as property, industrial buildings, or equipment, to improve its business capacity or efficiency.

Partnership Creditors

Individuals or entities to whom a partnership owes money or has some form of legal financial obligation.

Pro Rata

In proportion; according to the calculated share or division.

Apparent Authority

A situation in which a reasonable person would understand that an agent had authority to act, even if the agent did not have actual authority.