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?

Deadweight loss (B) Signup and view all the answers

Who first propounded the concept of economic surplus?

Jules Dupuit (C) Signup and view all the answers

What mathematical methods are often used in mathematical economics?

Differential and integral calculus, difference and differential equations, matrix algebra, mathematical programming, or other computational methods (B) Signup and view all the answers