10 Questions
What is consumer surplus?
The difference between the price consumers are willing to pay and the price they actually pay for a product.
What is producer surplus?
The difference between the price producers are willing to sell for and the market price.
What is deadweight loss?
A decrease in the total surplus from inefficiencies.
What is the sum of consumer and producer surplus known as?
Social surplus
What are the two related quantities of economic surplus?
Consumer surplus and producer surplus
True or false: Economic surplus is also known as total welfare or total social welfare or Marshallian surplus?
True
True or false: Consumer surplus is the monetary gain obtained by consumers because they are able to purchase a product for a price that is higher than the highest price they would be willing to pay?
False
True or false: Producer surplus is the amount that producers benefit by selling at a market price that is higher than the least that they would be willing to sell for?
True
True or false: The sum of consumer and producer surplus is sometimes known as social surplus or total surplus?
True
True or false: A decrease in total surplus from inefficiencies is called deadweight loss?
True
Test your knowledge on economic surplus and its different components, including consumer surplus and producer surplus. Learn about the monetary gains obtained by consumers and producers in mainstream economics.
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