Question

question 8
total surplus is:
a. always more for consumers than for producers.
b. the sum of consumer and producer surplus.
c. the difference between price and the cost to the seller.
d. equal to the area below the demand curve.
question 9
externalities are side effects on the welfare of others not involved in the production or consumption of a good or service that markets dont take into account.
true
false
question 10
well - functioning markets allow:
a. mutually beneficial trades to take place.
b. property rights to be unnecessary components of effective distribution.
c. producers to reap greater benefits, because they have greater power in the market.
d. consumers to gain at the expense of producers.

Explanation:

• Question 8: Total surplus in economics is defined as the sum of consumer surplus and producer surplus. It represents the overall benefit to society from the production and consumption of a good or service.
• Question 9: Externalities are indeed side - effects on the welfare of third - parties not involved in production or consumption that markets don't account for, such as pollution from a factory affecting nearby residents.
• Question 10: Well - functioning markets allow for mutually beneficial trades to occur. They create an environment where both producers and consumers can engage in transactions that increase their well - being.

Answer:

• Question 8: B. the sum of consumer and producer surplus.
• Question 9: True
• Question 10: A. mutually beneficial trades to take place.