The taxes paid by citizens are directly related to the benefit of government goods and services received.

As long as production is such that marginal social benefit is greater than marginal social cost, an efficient outcome occurs

Indicate whether the statement is true or false

Tina Makumbi imports sesame oil from Ethiopia and sells to a market that has a downward sloping demand curve.The demand curve indicates that some consumers are willing to pay $1.50 or more per pound for the first few pounds, but every consumer gets to buy at the market clearing price of $0.50 per pound. The difference between the most that consumers would pay and the actual amount they do pay is

called a. exporter surplus b. trade balance c. producer surplus d. consumer equilibrium e. consumer surplus