How is the economic surplus generated by a decision calculated?
A)It is the total benefits minus total costs arising from the decision.
B)It is the total benefits plus total costs arising from the decision.
C)It is the sum of benefits arising from the decision.
D)It is the sum of costs arising from the decision.

Question

Quizplus · Accepted Answer

Economic surplus is calculated as the total benefits minus total costs arising from the decision. This represents the net gain or positive difference between the value received and the cost incurred as a result of a particular decision.

How Is the Economic Surplus Generated by a Decision Calculated