Economic surplus is the
A) benefit gained by taking an action.
B) price paid to take an action.
C) difference between the benefit gained and the cost incurred of taking an action.
D) wage someone would have to earn in order to take an action.
E) difference between the price paid and taxes collected by the government.

Question

Quizplus · Accepted Answer

Economic surplus refers to the difference between the benefit gained and the cost incurred of taking an action. This is the net benefit or gain from taking an action, after taking into consideration the costs associated with it. Options A, B, D, and E are incorrect as they do not fully capture the concept of economic surplus.

Economic Surplus Is the