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13 Cards in this Set
- Front
- Back
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"Willingness to pay"
(p. 94) |
A consumer's ____________ for a good is the maximum price at which he or she would by that good.
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"Individual consumer surplus"
(p. 96) |
______________ is the net gain to an individual buyer from the purchase of a good. It is equal to the difference between the buyer's willingness to pay and the price paid.
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"Total consumer surplus"
(p.96) |
__________ is the sum of the individual consumer surpluses of all the buyers of a good in a market.
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"Consumer surplus"
(p. 96) |
The term __________ is often used to refer to both individual and to total consumer surplus.
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"Cost"
(p. 101) |
A seller's _____ is the lowest price at which he or she is wiling to sell a good.
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"Individual producer surplus"
(p. 101) |
_________ is the net gain to an individual seller from selling a good. It is equal to the difference between the price received and the seller's cost.
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"Total producer surplus"
(p. 102) |
____________ in a market is the sum of the individual producer surpluses of all the sellers of a good in a market.
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"Producer surplus"
(p. 102) |
Economists use the term ____________ to refer both to individual and to total producer surplus.
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"Total surplus"
(p. 105) |
The __________ generated in a market is the total net gain to consumers and producers from trading in the market. It is the sum of the producer and the consumer surplus.
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"Property rights"
(p. 111) |
__________ are the rights of owners of valuable items, whether resources or goods, to dispose of those items as they choose.
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"Economic signal"
(p. 111) |
An ____________ is any piece of information that helps people make better economic decisions.
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"Inefficient"
(p. 112) |
A market or an economy is __________ if there are missed opportunities: some people could be made better off without making other people worse off.
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"Market failure"
(p. 112) |
____________ occurs when a market fails to be efficient.
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