In a Circular-Flow Diagram, One Loop Shows the Flow of Real

question 47

True/False

In a circular-flow diagram, one loop shows the flow of real goods and services and the other loop shows the corresponding flow of dollars.

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Definitions:

Total Consumer Surplus

The sum of the individual consumer surpluses of all the buyers of a good in a market.

Consumer Surplus

The discrepancy between what consumers are prepared and capable of spending on a product or service and what they actually end up spending.

Total Consumer Surplus

Total consumer surplus is the difference between what consumers are willing to pay for a good or service versus what they actually pay, representing the net benefit to consumers.

Consumer Surplus

The difference between the maximum price a consumer is willing to pay and the actual price they pay.