Consumer Surplus Measures

question 36

Multiple Choice

Consumer surplus measures

• A)marginal utility.
• B)total utility.
• C)the cumulative difference between real and nominal prices.
• D)the cumulative difference between price and maximum willingness to pay.

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Definitions:

Retina

The light-sensitive layer at the back of the eye that contains cells which convert light into electrical signals for the brain to interpret.

Gate Theory

A theory suggesting that the spinal cord contains a neurological "gate" that either blocks pain signals or allows them to continue on to the brain.

Signal-Detection Theory

A framework describing how individuals discern between information-bearing patterns and random patterns that distract from the information, especially in the context of decision-making under uncertainty.

Volley Principle

A theory explaining how auditory nerve fibers collectively transmit sound wave frequencies by firing in rapid succession.