The net loss of consumer and producer surplus from underproduction or overproduction is called:
A) government revenue.
B) total surplus.
C) efficiency.
D) deadweight loss.

Question

Quizplus · Accepted Answer

Deadweight loss is the net loss of consumer and producer surplus from underproduction or overproduction. Government revenue refers to the income earned by the government from taxes and other sources. Total surplus is the sum of consumer and producer surplus in a market. Efficiency refers to the level of output that maximizes total surplus in a market.

The Net Loss of Consumer and Producer Surplus from Underproduction