Consumer Surplus Is

question 49

Multiple Choice

Consumer surplus is

• A) the difference between the maximum a person is willing to pay and current market price.
• B) the difference between current market price and full costs of production for the firm.
• C) the difference between the maximum a person is willing to pay and full costs of productions for the firm.
• D) current market price.

---

Definitions:

Valid Test

An assessment instrument that accurately measures what it is intended to measure, demonstrating both reliability and validity.

Correlation Coefficient

A number that represents the strength and direction of a relationship existing between two variables; number derived from the formula for measuring a correlation.

Psychological Test

A standardized measure designed to assess an individual’s mental and/or behavioral characteristics.

Valid

The quality of being logically or factually sound; applicable more commonly in contexts of arguments or test results.