Based on the Following Information, What Is the Amount of Public

question 68

Multiple Choice

Based on the following information, what is the amount of public saving?

• A)+3,700
• B)+2,500
• C)+200
• D)-300

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Definitions:

Consumer Surplus

The separation between the ideal amount consumers are willing to spend on a service or product and their real expenditures.

Producer Surplus

The discrepancy between what producers are ready to take for a product or service and the real amount they get.

Tax

A required contribution or another kind of monetary levy imposed by a government body on a taxpayer to underpin government expenditure and different public spending initiatives.

Deadweight Loss

Deadweight loss refers to the loss in economic efficiency that occurs when the equilibrium for a good or service is not achieved or is unattainable.