What should be used to analyze economic well-being in an economy
A)demand and supply
B)producer and consumer surplus
C)government spending and tax revenue
D)equilibrium price and quantity

Question

Quizplus · Accepted Answer

Producer and consumer surplus can be used to analyze economic well-being in an economy because they provide a measure of the welfare of producers and consumers, respectively. By looking at the gains from trade between buyers and sellers, we can get a sense of how efficient and equitable the economy is operating. While demand and supply, government spending and tax revenue, and equilibrium price and quantity are important concepts in economics, they do not necessarily provide a comprehensive picture of economic well-being.

What Should Be Used to Analyze Economic Well-Being in an Economy