Question

What is the term used to describe the excess of the benefit received from a good over the amount paid for it?

1) Profit
2) Loss
3) Surplus
4) Deficit

Answer 1

Consumer surplus is the term describing the excess of benefit over the amount paid for a good or service. So, the correct answer is option 3.

Step-by-step explanation:

The term used to describe the excess of the benefit received from a good over the amount paid for it is consumer surplus. Consumer surplus is the extra benefit consumers receive from buying a good or service, and it's measured by what the individuals would have been willing to pay minus the amount that they actually paid.

This concept is a fundamental part of understanding market efficiency and the demand curve, where the demand curve is a graphic representation of the relationship between price and quantity demanded of a certain good or service.

So, the correct answer is option 3.