"Consumer Surplus" Is

question 57

Multiple Choice

"Consumer surplus" is

• A)the difference between the price customers expect to pay, and the price they would have been willing to pay.
• B)the total of all the differences between the price each customer actually pays and the maximum price they would have been willing to pay, all other things being equal.
• C)the difference between the costs incurred in serving customers, and the revenue that they generate.
• D)the amount of extra product consumers buy because of the difference between the normal price and a special offer price.

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Definitions:

Exchange Rate

The value of one currency for the purpose of conversion to another, used in international trade and investment.

Natural Rate

Refers to the long-term unemployment rate or interest rate that is observed once the effect of short-term cyclical factors has been removed.

Aggregate Demand

The entirety of demand for goods and services in an economic setting, pegged at an established price level and during a defined time.

Unemployment Rate

The percentage of the workforce currently without jobs and actively searching for employment.