Lecture Principles of Microeconomics: Chapter 6 - Wealth creation and destruction. After reading this chapter, you should be able to answer the following questions: What is wealth? What creates wealth? How is wealth destroyed? What is consumers’ surplus? What is producers’ surplus? When is total surplus to society maximized? What is deadweight loss? How do government set prices, taxes and subsidies create deadweight loss? How do innovations affect a market economy? |