When Disposable Income Is 4,000,the APS Is

question 249

Multiple Choice

When disposable income is 4,000,the APS is
Refer To: 06-199

• A).25.
• B).5.
• C).75.
• D)1.0.
• E)1.25.

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Definitions:

Total Surplus

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

Gains From Trade

Gains achieved by dividing tasks and trading; in this way people can get more of what they want through trade than they could if they tried to be self-sufficient.

Total Surplus

The sum of consumer surplus and producer surplus; a measure of the total benefit to society from a market transaction.

Consumer Surplus

The differential between consumers’ readiness to pay a certain amount for a service or good and the payment completed.