Economic Surplus Quiz
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Questions and Answers

What is consumer surplus?

  • The sum of consumer and producer surplus
  • The decrease in total surplus from inefficiencies
  • The monetary gain obtained by consumers because they are able to purchase a product for a price that is less than the highest price that they would be willing to pay (correct)
  • 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

    • What is producer surplus?

  • The decrease in total surplus from inefficiencies
  • 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 (correct)
  • The sum of consumer and producer surplus
  • The monetary gain obtained by consumers because they are able to purchase a product for a price that is less than the highest price that they would be willing to pay

    • What is the sum of consumer and producer surplus sometimes known as?

  • Market equilibrium
  • Economic surplus
  • Social surplus or total surplus (correct)
  • Deadweight loss

    • What is a decrease in total surplus from inefficiencies called?

    <p>Deadweight loss</p> Signup and view all the answers

    Who first propounded the concept of economic surplus?

    <p>Jules Dupuit</p> Signup and view all the answers

    What mathematical methods are often used in mathematical economics?

    <p>Differential and integral calculus, difference and differential equations, matrix algebra, mathematical programming, or other computational methods</p> Signup and view all the answers

    What is the language of mathematics useful for in economics?

    <p>Formulating theoretical relationships with rigor, generality, and simplicity</p> Signup and view all the answers

    Why is mathematics important in economic theory?

    <p>It enables economists to make specific, positive claims about controversial subjects</p> Signup and view all the answers

    What are mathematical economic models?

    <p>Stylized and simplified mathematical relationships asserted to clarify assumptions</p> Signup and view all the answers

    How does mathematics in economics contribute to forming testable propositions?

    <p>By allowing economists to form meaningful, testable propositions about complex subjects</p> Signup and view all the answers

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