Sharon Is Bidding on a New Camera on an Internet

question 46

Multiple Choice

Sharon is bidding on a new camera on an internet auction.She values the camera at $700 and wins the auction with a bid of $650, therefore:

• A)Sharon's willingness to pay is $700 and her consumer surplus is 0
• B)Sharon's willingness to pay is $700 and her consumer surplus is $50
• C)Sharon's willingness to pay is $650 and her consumer surplus is $50
• D)Sharon's willingness to pay is $650 and her consumer surplus is $0

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Definitions:

Presidential Discretion

The authority and freedom of action granted to the President in areas not explicitly defined by the constitution or statutes, often in the context of national security or foreign policy.

Transfer Payments

Payments made by the government to individuals through various social benefit programs, without any goods or services being received in return.

Social Security Benefits

Government programs designed to provide financial support to individuals during retirement, disability, or upon death, ensuring income for beneficiaries.

Budget Deficit

Occurs when a government's expenditures exceed its revenues during a specific period of time, leading to borrowing or debt accumulation.