In Economics, All the Items That People Would Consume If

question 143

Multiple Choice

In economics, all the items that people would consume if they had unlimited income are known as

• A) wants.
• B) aggregates.
• C) outputs.
• D) needs.

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Definitions:

Competitive Salaries

Compensation levels offered by employers that are at or above the market rate to attract and retain talent.

Consumer Surplus

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

Producer Surplus

The difference between the amount producers are willing to sell a good for and the actual amount they receive by selling it at the market price.

Total Surplus

The sum of consumer and producer surplus; represents the total net benefit to society from the production and consumption of a good or service.