The net benefit from receiving a good is called a
A)Consumer surplus
B)Producer surplus
C)Economic surplus
D)Economic efficiency

Question

Quizplus · Accepted Answer

The net benefit from receiving a good is called the consumer surplus, which is the difference between the maximum price the consumer is willing to pay for a good and the actual price paid. The consumer surplus represents the value that the consumer derives from the good, and it is an indicator of the welfare gain that the consumer receives from the transaction. The other options are not accurate descriptions of the net benefit from receiving a good. Producer surplus refers to the difference between the price sellers receive and the minimum price they are willing to accept for a good. Economic surplus is the combined benefit to consumers and producers in a market exchange. Economic efficiency refers to the optimal allocation of resources in a market, where the marginal social benefit equals the marginal social cost.

The Net Benefit from Receiving a Good Is Called a