Surplus

Question 1

Consumer surplus

Answer 1

The difference between the amount that consumers are willing to pay and the amount actually payed

Question 2

Producer surplus

Answer 2

The difference between the amount the producer is willing to supply and the actual amount they receive

Question 3

Producer surplus on s+d curve

Answer 3

Difference below price and the supply curve to equalibrium

Question 4

Consumer surplus on s+d curve

Answer 4

Difference above price and demand curve to equalibrium

Question 5

Flat tax

Answer 5

A tax put in goods and services

A set amount not percentage, same amount regardless of income

Question 6

Subsidies

Answer 6

Direct payments, tax breaks and other special assistance that government provide businesses to offset cost