Match each of the terms on the left with its definition on the right. Click on the term first and then click on the matching definition. As you match them correctly they will move to the bottom of the activity.
Willingness to pay Total producer surplus Market failure Individual producer surplus Total surplus Producer surplus Individual consumer surplus Total consumer surplus Economic signal Consumer surplus Cost Inefficient Property rights | a term often used to refer both to individual consumer surplus and to total consumer surplus. (of seller) the lowest price at which a seller is willing to sell a good. describes a market or economy in which there are missed opportunities: some people could be made better off without making other people worse off. the sum of the individual consumer surpluses of all the buyers of a good in a market. the maximum price a consumer is prepared to pay for a good. the net gain to an individual buyer from the purchase of a good; equal to the difference between the buyer’s willingness to pay and the price paid. a term often used to refer both to individual producer surplus and to total producer surplus. the rights of owners of valuable items, whether resources or goods, to use, rent, or dispose of those items as they choose. any piece of information that helps people make better economic decisions. the total net gain to consumers and producers from trading in a market; the sum of the producer surplus and the consumer surplus. the failure of a market to be efficient. This happens when the individual pursuit of self-interest leads to bad results for society as a whole. the net gain to an individual seller from selling a good; equal to the difference between the price received and the seller’s cost. the sum of the individual producer surpluses of all the sellers of a good in a market. |