When Policymakers Are Considering a Particular Action,they Can Use Consumer

question 49

Multiple Choice

When policymakers are considering a particular action,they can use consumer surplus as a(n)

• A)objective measure of the benefits to buyers as determined by policymakers.
• B)measure of the benefits to buyers as the buyers perceive them.
• C)potentially flawed measure of the benefits to buyers if the buyers are not rational.
• D)Both b)and c)are correct.

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Definitions:

Cash Outflows

Money that is spent or invested, flowing out of a business or individual's account.

Accounts Receivable

Money owed to a business by its customers for goods or services that have been delivered but not yet paid for.

Accounts Payable

The amounts a company owes to its suppliers or creditors for goods or services received that are not yet paid for.

Cash Flow

The net amount of cash and cash-equivalents being transferred into and out of a business.