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7 Cards in this Set
- Front
- Back
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Welfare Economics
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the study of how the allocation of resources affects economic well-being
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Willingness to pay
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the maximum amount that a buyer will pay for a good
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Consumer Surplus
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the amount a buyer is willing to pay for a good minus the amount the buyer actually pays for it
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Cost
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the value of everything a seller must give up to produce a good
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Producer Surplus
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the amount a seller is paid for a good minus the seller's cost of providing it
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Efficiency
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the property of a resource allocation of maximizing the total surplus received by all members of society
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Equality
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the property of distributing economic prosperity uniformly among the members of society
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