Which of the following best defines consumer surplus?
a. the amount that individuals actually paid, minus the amount that they would have been willing to pay
b. the amount that a seller is paid for a good minus the seller’s actual cost
c. the amount that individuals would have been willing to pay, minus the amount that they actually paid
d. when it is impossible to improve the situation of one party without imposing a cost on another
c. the amount that individuals would have been willing to pay, minus the amount that they actually paid
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Capital flight
A) increases reserves. B) is never associated with the expectation of devaluation. C) may undo expected devaluation. D) reduces losses during a devaluation scare. E) decreases reserves and may induce devaluation.
The 1987 study by Bowen, Leamer and Sveikauskas
A) supported the validity of the Leontief Paradox. B) supported the validity of the Heckscher-Ohlin model. C) used a two-country and two-product framework. D) demonstrated that in fact countries tend to use different technologies. E) proved that the U.S.'s comparative advantage relied on skilled labor.