Micro Ch. 4

Economic surplus in a market is the sum of​ _____ surplus and​ _____ surplus. In a competitive​ market, with many buyers and sellers and no government​ restrictions, economic surplus is at a​ _____ when the market is in​ _____.

​​consumer; producer;​ maximum; equilibrium

a market outcome in which the marginal benefit to consumers of the last unit produced is equal to its marginal cost of production and in which the sum of consumer surplus and producer surplus is at a maximum.a

economic efficiency

Consumer and producer surplus measure the​ _____ benefit rather than the​ _____ benefit.

net total

​"Rent controls, government farm​ programs, and other price ceilings and price floors are​ bad."

normative statement. The statement is concerned with what should be.no

When the government imposes price floors or price​ ceilings,

some people​ win, some people​ lose, and there is a loss of economic efficiency.

the actual division of the burden of a tax between buyers and sellers in a market.th

tax incidence