Consumer Surplus Is

question 6

Multiple Choice

Consumer surplus is

• A)the sum of the marginal values to the consumer.
• B)the total value that a consumer receives from the purchase of a particular good.
• C)a measure of the gains that a consumer forgoes by buying this product rather than another.
• D)the difference between what the consumer is willing to pay for all the units consumed and what he or she actually paid.
• E)the consumption of a commodity above and beyond the amount required by the consumer.

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Definitions:

Maturity Date

The specific date on which the principal amount of a bond, loan, or other financial instrument is to be paid back in full to the investor.

Tax Bracket

A range of income taxed at a specific rate by the government, part of a progressive tax system.

Corporate Bond

A debt security issued by a corporation and sold to investors, paying fixed interest over its lifetime and repaying the principal at the bond’s maturity date.

Tax-Exempt

Financial earnings or transactions that are free from taxation.