13 May 7 Quick Questions
1. Define consumer surplus. How is consumer surplus related to the concept of willingness to pay? (75 words)
2. Define producer surplus. How both consumer surplus and producer surplus are related to market efficiency and welfare economics? (75 words)
3. Define deadweight loss. How is deadweight loss related to the concepts of consumer surplus, producer surplus, and taxation? (75 words)
4. What is the Laffer Curve and how does this concept relate to taxation and economic growth? (75 words)
5. What is a tariff? What are the potential effects of implementing tariffs and how does this policy create winners and losers in international trade? (75 words)
6. Explain the difference between a negative externality and a positive externality. Provide an example of both types of externalities. (75 words)
7. How are negative externalities related to the concept of market failure? (75 words)
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