CHAPTER 5: THẶNG DƯ VÀ PHÚC LỢI

The willingness to pay of a buyer is?

• The minimum amount they are willing to pay for a good.

• Consumer surplus.

• Producer surplus.

• The maximum amount they are willing to pay to purchase a good.

What does consumer surplus (CS) measure?

• Measures the benefit of businesses participating in the market.

• Measures the benefit of producers.

• Measures the benefit of sellers.

• Measures the benefit that buyers receive when participating in the market.

Consumer surplus (CS) is the area above which line on the graph?

• The area below the demand curve and above the price line.

• The area above the demand curve and below the price line.

• The area above the supply curve and below the price line.

• The area above the supply curve and above the price line.

The increase in the price of goods along a fixed demand curve will?

• Improve the material welfare of buyers.

• Reduce consumer surplus.

• Increase consumer surplus.

• Enhance market efficiency.

Production surplus (PS) is the area located where on the supply and demand graph?

• Below the demand curve and above the price line

• Above the demand curve and above the price line

• Below the price line and above the supply curve

• Below the price line and below the supply curve

What is the production cost for the seller?

• The minimum amount of money that the seller is willing to accept for selling a good

• The maximum amount of money that the seller is willing to accept for selling a good

• The production surplus of the seller.

• The consumer surplus of the seller.

What does producer surplus (PS) measure?

• Producer surplus measures the benefit to sellers when participating in the market.

• Producer surplus measures the benefit to buyers when participating in the market.

• Producer surplus measures the rate of economic growth.

• Producer surplus measures the revenue of the business.

The total surplus is the area of which part on the graph as shown in the image?

• Above the supply curve and below the price line.

• Below the demand curve and above the price line.

• Above the supply curve and above the demand curve.

• Below the demand curve and above the supply curve.

The increase in the price of goods along a fixed supply curve will?

• Increase consumer surplus.

• Increase producer surplus.

• Decrease producer surplus.

• Improve market equity.

The concept of "the invisible hand" by Adam Smith suggests that the result of the market economy is?

• Maximizing total surplus.

• Creating equality for all members of society.

• Minimizing total surplus

• Options A & B are correct.