One way of measuring the economic inefficiency in a specific situation is to calculate the ( )
A: difference between the price of the good in the inefficient situation and the price if the situation was efficient.
B: change in revenue reported by firms.
C: loss in consumer and producer surplus relative to an efficient solution.
D: change in economic profits relative to an efficient solution.
A: difference between the price of the good in the inefficient situation and the price if the situation was efficient.
B: change in revenue reported by firms.
C: loss in consumer and producer surplus relative to an efficient solution.
D: change in economic profits relative to an efficient solution.
举一反三
- The SPSE essay discusses a situation and a problem and then proposes a solution and a(an) ___________ of the solution.
- What is the total surplus of a market? A: the sum of consumer surplus and producer deficit B: the sum of consumer surplus and producer surplus C: the difference between the consumer surplus and producer surplus D: the difference between the highest price that a consumer is willing to pay and the lowest price that a producer is willing to sell
- What elements might appear in economic news? A: the situation of the economy B: the cause of the economic situation C: its influence of the economic situation D: the reactions or comments on the economic situation
- Producer surplus is equal to: A: the difference between the highest market price consumers are willing to pay for a product and the minimum amount producers are willing to accept for that product. B: the difference between the market price consumers are willing to pay for a product and the actual price they pay. C: the price a producer receives for a product minus the marginal cost of production. D: the economic profit earned from the sale of a good, minus its marginal cost of production.
- Suppose that a consumer is consuming 10 units of a discrete good and the price increases from $5 per unit to $6. However, after the price change the consumer continues to consume 10 units of the discrete good. What isthe loss in the consumer’s surplus from this price change? A: $ 0 B: $ 4 C: $ 5 D: $ 10