Economic surplus is the sum of consumer surplus and producer surplus, and is calculated as the value consumers receive from a good or service (consumer surplus) minus the cost of producing it (producer surplus). Therefore, the correct choice is D, as it directly defines Economic surplus.

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Economic Surplus Is

Question 90

Multiple Choice

Economic surplus is

A) the ratio of consumer surplus to producer surplus.
B) the difference between consumer surplus and producer surplus.
C) the difference between tax revenue and government expenditure.
D) the sum of consumer surplus and producer surplus.
E) minimized at the point of market equilibrium.

Correct Answer: