Chapter 14 Flashcards Preview

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Flashcards in Chapter 14 Deck (8)
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1
Q

Consumer Surplus

A

The difference between the value of a unit of a good to the buyer and what the buyer actually pays for it

2
Q

Deadweight Loss

A

The dollar value of potential benefits not achieved due to inefficiency in a particular market

3
Q

Economic efficiency

A

A situation in which every possible Pareto Improvement is being exploited

4
Q

Market consumer surplus

A

The total consumer surplus enjoyed by all consumers in a market

5
Q

Market producer surplus

A

The total producer surplus gained by all sellers in a market

6
Q

Pareto Improvement

A

An action that makes at least one person better off, and harms no one

7
Q

Producer Surplus

A

The difference between what the seller actually gets for a unit of a good and the cost of providing it

8
Q

Total Benefits

A

The sum of consumer and producer surplus in a particular market