Table 7-7 -Refer to Table 7-7. You Have Two Essentially Identical Extra

question 370

Multiple Choice

Table 7-7
-Refer to Table 7-7. You have two essentially identical extra tickets to the Midwest Regional Sweet 16 game in the men's NCAA basketball tournament. The table shows the willingness to pay of the four potential buyers in the market for a ticket to the game. You hold an auction to sell the two tickets. Michael and Earvin each offer to pay $360 for a ticket, and you sell them the two tickets. What is the total consumer surplus in the market?

• A)$720
• B)$180
• C)$140
• D)$40

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Definitions:

Real Output

The total value of all goods and services produced in an economy, adjusted for inflation, reflecting the actual productivity rather than nominal figures.

Government Purchases

These refer to the total expenditures for goods and services by all levels of government, excluding transfer payments.

Expenditures

Payments or outlays of money to cover costs or expenses.

Salaries

Periodic payments made to employees, usually on a monthly or biweekly basis, in return for labor services performed.