Microeconomics Ch 7

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  1. Welfare economics
    The study of how the allocation of resources affects economic well-being
  2. Willingness to pay
    The maximum amount that a buyer will pay for a good
  3. Consumer surplus
    The amount a buyer is willing to pay for a good minus the amount the buyer actually pays for it.
  4. Cost
    The value ofeverything a seller must give up to produce a good.
  5. Producer surplus
    The amount a seller is paid for a good minus the seller's cost of providing it.
  6. Effeciency
    The property of a resource allocation of maximizing the total surplus recieved by all members of society.
  7. Equality
    The property of distributing economic prosperity uniformly among the members fo society.
Card Set
Microeconomics Ch 7
Microeconomics Ch 7
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