The net benefit received through the purchase and consumption of medical care is referred to as _______.
A) economic surplus
B) deadweight loss
C) consumer surplus
D) producer surplus
E) None of the above

Question

Quizplus · Accepted Answer

Consumer surplus represents the difference between the maximum amount that consumers are willing to pay for a good or service and the actual amount they pay. In the case of medical care, it is the net benefit received through the purchase and consumption of medical care. Option A (economic surplus) is a broader term that includes both consumer and producer surplus. Option B (deadweight loss) refers to the loss of economic efficiency that occurs when the equilibrium for a good or service is not achieved. Option D (producer surplus) is the extra profit that producers make when they sell a good or service at a price higher than the minimum price they would be willing to accept.

The Net Benefit Received Through the Purchase and Consumption of Medical