Economists Measure the Degree to Which Consumers Lose When Walmart

question 19

Multiple Choice

Economists measure the degree to which consumers lose when Walmart comes to a city by looking that their willingness to pay more at others stores. This measure is called

• A)surveyed preferences.
• B)understated preferences.
• C)revealed preferences.
• D)unrequited preferences.

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Definitions:

Oil Refinement

The industrial process of transforming crude oil into usable products including fuels, lubricants, and petrochemicals.

Pollution

The contamination of the natural environment, which can lead to harmful effects on ecosystems and human health.

Marginal External Cost

The additional cost imposed on society that is not accounted for by the producer as output increases.

Marginal Social Cost

The cost to society of producing one additional unit of a good or service, including both the private costs and any external costs.