The Difference Between the Value of a Good to Consumers

question 8

Multiple Choice

The difference between the value of a good to consumers and its price is known as:

• A)​demand.
• B)​marginal utility.
• C)​total utility.
• D)​consumer surplus.

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Definitions:

Disposable Income

The total funds available for spending and saving by households after subtracting income taxes.

Savings

Money set aside from personal income for future use, often placed in secure accounts or investments for growth or as a safeguard.

Disposable Income

Funds households are left with for saving or expenditure after income taxes are taken out.

APC (Average Propensity to Consume)

The fraction of income that is spent on consumption as opposed to savings.