A Product Is Defined as a Business Product Rather Than

question 44

Multiple Choice

A product is defined as a business product rather than a consumer good on the basis of its:

• A) intended use
• B) physical characteristics
• C) price
• D) distribution method
• E) tangible attributes

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Definitions:

Consumer Surplus

The gap in the total funds consumers are willing and financially prepared to allocate for a good or service, versus the funds actually allocated.

Producer Surplus

The difference between the amount producers are willing to supply a good for and the actual amount they receive when the good is sold.

Producer Surplus

The gap highlighting the difference between the initial asking price by sellers for goods or services and the ultimately received price.

Specific Tax

A tax that is levied as a fixed amount per unit on a particular good or service.