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.
b
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When the government chooses to spend the tax dollars that it collects on homeland security, its choice
A) involves a tradeoff of other goods and services such as education for more homeland security. B) illustrates that scarcity does not always exist. C) involves no tradeoff because the defense is necessary. D) primarily affects who gets the goods and services produced.
The income of corporate managers is included in
a. employee compensation b. interest c. rent d. corporate profit e. proprietors' income