Question

Consumer surplus for one individual is equal to what? The difference between the selling price and market price, multiplied by the number of goods purchased. The total number of goods purchased by that individual multiplied by the difference between the market price and the production cost. The area between the demand curve and the supply curve, for that individual. The total area between the demand curve and the market price. The difference between the price that individual is willing to pay and the price the individual actually pays, multiplied by the number of goods purchased by that individual.

2.

You are given the following data:

Consumption (C):                70

Investment (I):                     40

Government Spending (G): 20

Net Exports (NX):               -10

Capital Income:                   50

Capital Stock (initial):       200

Depreciation rate (d):       0.10

What is the Wage Income?

90

80

60

50

70

Answer 1

Answer:

Consumer surplus for one individual is equal to "The difference between the price that individual is willing to pay and the price the individual actually pays, multiplied by the number of goods purchased by that individual".

Answer 2:

Correct option is "50"

Formulas and calculations:

Wage income=Net National income-Capital income.

Net national income=GDP-Depreciation+Net income from abroad.

Depreciation=Depreciation rate*Capital stock(initial)=0.10*200=20

GDP=C+I+G+NX=70+40+20-10=120

Net national income=GDP-Depreciation+Net income from abroad=120-20+0=100

Wage income=Net National income-Capital income=100-50=50