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6 Cards in this Set
- Front
- Back
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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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A buyer's willingness to pay minus the amount the buy actually pays.
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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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Producer surplus
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The amount a seller is paid for a good minus the seller's cost.
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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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Equity
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The fairness of the distribution of well-being among the members of society.
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