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6 Cards in this Set

  • Front
  • Back
Willingness to pay
The maximum amount that a buyer will pay for a good.
Consumer surplus
A buyer's willingness to pay minus the amount the buy actually pays.
Welfare economics
The study of how the allocation of resources affects economic well-being.
Producer surplus
The amount a seller is paid for a good minus the seller's cost.
Efficiency
The property of a resource allocation of maximizing the total surplus received by all members of society.
Equity
The fairness of the distribution of well-being among the members of society.