Consumer Surplus

question 97

Multiple Choice

Consumer surplus

• A)is the amount of a good that a consumer can buy at a price below equilibrium price.
• B)is the amount a consumer is willing to pay minus the amount the consumer actually pays.
• C)is the number of consumers who are excluded from a market because of scarcity.
• D)measures how much a seller values a good.

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Definitions:

Economy Control

The use of various tools and policies by a government to regulate and oversee the economy’s health and stability.

Stagflation

A condition of slow economic growth and relatively high unemployment – a period of stagnation – accompanied by rising prices (inflation).

High Unemployment Rates

A condition where a significant portion of a workforce is not employed but is actively seeking work, reflecting economic downturns or structural changes in the economy.

High Inflation Rates

A situation characterized by a rapid and excessive rise in the general price level of goods and services in an economy over a period of time.