Economists Generally Agree That the Goal in Developing the Concept

question 131

Multiple Choice

Economists generally agree that the goal in developing the concept of consumer surplus is to:

• A)make positive judgments about the desirability of market outcomes
• B)make normative judgments about the desirability of market outcomes
• C)measure the profit of firms producing the good
• D)assess the forgone value when the price is too high

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Definitions:

Quoted Price

The publicly stated cost or value of a stock, commodity, or financial instrument.

Coupon Rate

The yearly rate of interest that the entity issuing a bond pays to its investors, represented as a proportion of the bond's nominal value.

Yield

Yield is the income returned on an investment, such as the interest or dividends received, expressed as a percentage of the investment's cost.

Price

The financial sum anticipated, obliged, or handed over in exchange for an item.