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.
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132243
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Microeconomics Ch 7
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Microeconomics Ch 7
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