What does willingness to pay measure?
a) the amount a buyer is willing to pay for a good minus the amount the buyer actually pays for it
b) the amount a seller actually receives for a good minus the minimum amount the seller is willing to accept
c) the maximum amount a buyer is willing to pay minus the minimum amount a seller is willing to accept
d) the maximum amount that a buyer will pay for a good
Ans: d) the maximum amount that a buyer will pay for a good
You might also like to view...
Economist Steve Landsburg has pointed out that Ebenezer Scrooge's change in behavior from miser to spender might actually be detrimental to the economy because
A) saving has to be greater than consumption for the economy to grow. B) Scrooge was happiest when he was saving money, and happiness is the key to economic growth. C) Scrooge's miserly saving helped contribute to the production of investment goods rather than consumption goods. D) Scrooge's consumption habits were more detrimental to the environment than were his earlier saving habits.
Related to the Economics in Practice on p. 666: When a country opens its markets to free trade, competition ________ and efficiency ________.
A. grows; improves B. grows; declines C. decreases; declines D. decreases; improves