Table 12-3 -Refer to Table 12-3.Assume That the Price of a Weekend

question 442

Multiple Choice

Table 12-3

-Refer to Table 12-3.Assume that the price of a weekend ski pass is $45 and that the price reflects the actual unit cost of providing a weekend of skiing.What is the value of the surplus that accrues to all four skiers from their weekend trip?

• A) $75
• B) $105
• C) $185
• D) $215

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Definitions:

Transfer Payments

Payments made by the government to individuals or other organizations without receiving any goods or services in return.

Federal Budget Deficit

The financial situation in which the federal government's expenditures exceed its revenues in a given fiscal year, leading to borrowing or debt accumulation.

Fiscal Policy

Policies implemented by the government that involve taxation and expenditure to affect economic activities.

Chronic Deficits

entail persistent and extended periods where expenses exceed revenue, leading to sustained budget shortfalls.