Total Surplus Is

question 71

Multiple Choice

Total surplus is

• A)equal to consumer surplus minus producer surplus.
• B)equal to the total value to buyers minus the total cost to sellers.
• C)equal to consumers' willingness to pay plus producers' cost.
• D)greater than the sum of consumer surplus plus producer surplus.

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Definitions:

Nation's Wealth

The total value of all assets owned by the inhabitants of a country, including both financial assets and physical assets.

Percentage

A percentage is a way of expressing a number as a fraction of 100.

Expected Utility

The sum of the utilities coming from all possible outcomes of a deal, weighted by the probability of each occurring.

Risk-loving

An inclination to engage in behaviors or decisions that involve exposure to uncertainty, with the potential for higher rewards.