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Chapter 10

Consumer and Producer's Surplus

Multiple Choice Questions

1. The concept of consumer's surplus was originally developed by

āωāĻĒāĻ­োāĻ•্āϤাā§° āωāĻĻ্āĻŦৃāϤ্āϤ⧰ āϧাā§°āĻŖাāϟো āĻŽূāϞāϤঃ āχāϝ়াā§° āĻĻ্āĻŦাā§°া āĻŦিāĻ•āĻļিāϤ āϕ⧰া āĻšৈāĻ›িāϞ

(a) Marshall 

āĻŽাā§°্āĻļ্āĻŦেāϞ 

(b) Pigou

āĻĒিāĻ—ু

(c) A.J. Dupuit 

āĻ.āϜে. āĻĄুāĻĒুāχāϟ

(d) J.R. Hicks

āϜে āφ⧰ āĻšিāĻ•্āϏ

Answer: (c) A.J. Dupuit (āĻ.āϜে. āĻĄুāĻĒুāχāϟ)।

2. Consumer's surplus is availabe from the units of a commodity that are

āωāĻĒāĻ­োāĻ•্āϤাā§° āĻ…āϤিā§°িāĻ•্āϤ āĻĒā§°িāĻŽাāĻŖ āĻāϟা āϏাāĻŽāĻ—্ā§°ীā§° āĻāĻ•āϕ⧰ āĻĒā§°া āĻĒ্ā§°াāĻĒ্āϤ āĻšāϝ় āϝিāĻŦোā§° āĻšৈāĻ›ে 

(a) Intra-marginal 

āφāύ্āϤঃ-āĻĒ্ā§°াāύ্āϤিāĻ• 

(b) marginal 

āĻĒ্ā§°াāύ্āϤিāĻ•

(c) Post-marginal 

āĻĒোāώ্āϟ-āĻŽাā§°্āϜিāύেāϞ

Answer: (a) Intra-marginal (āφāύ্āϤঃ-āĻĒ্ā§°াāύ্āϤিāĻ•)।

3. If the price of a commodity falls, the consumer's surplus from it

āϝāĻĻি āϏাāĻŽāĻ—্ā§°ী āĻāϟাā§° āĻŽূāϞ্āϝ āĻš্ā§°াāϏ āĻšāϝ়, āχāϝ়াā§° āĻĒā§°া āĻ—্ā§°াāĻšāϕ⧰ āĻ…āϤিā§°িāĻ•্āϤ āĻĒā§°িāĻŽাāĻŖ

(a) Rises

āωāϤ্āĻĨাāύ  

(b) Falls 

āϜāϞāĻĒ্ā§°āĻĒাāϤ

(c) Remains unchanged

āĻ…āĻĒā§°িā§ąā§°্āϤিāϤ āĻšৈ āφāĻ›ে

Answer: (a) Rises (āωāϤ্āĻĨাāύ)।

4. In case of pain economy, the consumer's surplus is
āĻŦিāώ āĻ…ā§°্āĻĨāύীāϤিā§° āĻ•্āώেāϤ্ā§°āϤ, āĻ—্ā§°াāĻšāϕ⧰ āĻ…āϤিā§°িāĻ•্āϤ āĻĒā§°িāĻŽাāĻŖ āĻšৈāĻ›ে

(a) Measurable 
āĻĒā§°িāĻŽাāĻĒāϝোāĻ—্āϝ 

(b) Not measurable
āĻĒā§°িāĻŽাāĻĒāϝোāĻ—্āϝ āύāĻšāϝ়

(c) Neither of the two.
āĻĻুāϝ়োāϟাā§° āĻ•োāύোāϟোā§ąেāχ āύāĻšāϝ়।

Answer: (b) Not measurable (āĻĒā§°িāĻŽাāĻĒāϝোāĻ—্āϝ āύāĻšāϝ়)।

5. Producer's surplus is the excess of market price over
āĻ‰ā§ŽāĻĒাāĻĻāϕ⧰ āĻ…āϤিā§°িāĻ•্āϤ āĻšৈāĻ›ে āĻŦāϜাā§°ā§° āĻŽূāϞ্āϝ⧰ āĻ…āϤিā§°িāĻ•্āϤ āϤাāϤāĻ•ৈ āĻ…āϧিāĻ•

(a) MU

āĻāĻŽāχāω

(b) MR

āĻāĻŽāφ⧰

(c) MC

āĻāĻŽāϚি
 
Answer: (c) MC (āĻāĻŽāϚি)।

Very Short Answer Type Questions

āĻ…āϤি āϚāĻŽু āωāϤ্āϤ⧰⧰ āĻĒ্ā§°āĻļ্āύ

1. Define consumer's surplus.
āĻ—্ā§°াāĻšāϕ⧰ āĻ…āϤিā§°িāĻ•্āϤ āύিā§°্āϧাā§°āĻŖ āϕ⧰া।

Answer:

2. What happens to consumer's surplus, if the price of the given commodity falls?

āϝāĻĻি āĻĒ্ā§°āĻĻāϤ্āϤ āϏাāĻŽāĻ—্ā§°ীā§° āĻŽূāϞ্āϝ āĻš্ā§°াāϏ āĻšāϝ়, āĻ—্ā§°াāĻšāϕ⧰ āĻ…āϤিā§°িāĻ•্āϤ āĻĒā§°িāĻŽাāĻŖā§° āĻ•ি āĻš'āĻŦ?

Answer:

3. How is consumer's surplus measured through the cardinal utility approach ?
āĻŽুāĻ–্āϝ āωāĻĒāϝোāĻ—িāϤা āĻĒāĻĻ্āϧāϤিā§° āϜ⧰িāϝ়āϤে āωāĻĒāĻ­োāĻ•্āϤাā§° āĻ…āϤিā§°িāĻ•্āϤ āĻĒā§°িāĻŽাāĻŖ āĻ•েāύেāĻĻā§°ে āϜোāĻ–া āĻšāϝ়?

Answer:

4. On which law of utility is the concept of consumer's surplus based?
āωāĻĒāĻ­োāĻ•্āϤাā§° āĻ…āϤিā§°িāĻ•্āϤ āϧাā§°āĻŖাāϟো āĻ•োāύāϟো āωāĻĒāϝোāĻ—িāϤাā§° āύিāϝ়āĻŽā§° āĻ“āĻĒā§°āϤ āφāϧাā§°িāϤ?

Answer:

5. What is meant by producer's surplus?
āĻĒ্ā§°āϝোāϜāϕ⧰ āωāĻĻ্āĻŦৃāϤ্āϤ⧰ āĻ…ā§°্āĻĨ āĻ•ি?

Answer: 

Short Answer Type Questions
āϚāĻŽু āωāϤ্āϤ⧰āĻĒ্ā§°āĻ•াā§°ā§° āĻĒ্ā§°āĻļ্āύ

1. What is meant by consumer's surplus?

āωāĻĒāĻ­োāĻ•্āϤাā§° āĻ…āϤিā§°িāĻ•্āϤ ā§° āĻ…ā§°্āĻĨ āĻ•ি?

Answer:

2. What are the assumptions of consumer's surplus ?

āωāĻĒāĻ­োāĻ•্āϤাā§° āĻ…āϤিā§°িāĻ•্āϤ āĻĒā§°িāĻŽাāĻŖā§° āϧাā§°āĻŖাāĻŦোā§° āĻ•ি?

Answer:

3. What is meant by price-compensating variation in income ?

āωāĻĒাā§°্āϜāύ⧰ āĻŽূāϞ্āϝ-āĻ•্āώāϤিāĻĒূā§°āĻŖā§° āϤাā§°āϤāĻŽ্āϝ⧰ āĻ…ā§°্āĻĨ āĻ•ি?

Answer:

4. Give the meaning of quantity compensating variation in income:

āωāĻĒাā§°্āϜāύ⧰ āĻĒā§°িāĻŽাāĻŖ āĻ•্āώāϤিāĻĒূā§°āĻŖā§° āϤাā§°āϤāĻŽ্āϝ⧰ āĻ…ā§°্āĻĨ āĻĻিāϝ়āĻ•:

Answer:

5. Define price-equivalent variation in income.

āωāĻĒাā§°্āϜāύ⧰ āĻŽূāϞ্āϝ-āϏāĻŽāϤুāϞ্āϝ āϤাā§°āϤāĻŽ্āϝ āύিā§°্āϧাā§°āĻŖ āϕ⧰া।

Answer:

6. What is the meaning of quantity-equivalent variation in income?

āωāĻĒাā§°্āϜāύ⧰ āĻĒā§°িāĻŽাāĻŖ-āϏāĻŽāϤুāϞ্āϝ āϤাā§°āϤāĻŽ্āϝ⧰ āĻ…ā§°্āĻĨ āĻ•ি?

Answer:

7. What are the theoretical weaknesses of consumer's surplus? 

āĻ—্ā§°াāĻšāϕ⧰ āĻ…āϤিā§°িāĻ•্āϤ ā§°āĻ–াā§° āϤাāϤ্āϤ্āĻŦিāĻ• āĻĻুā§°্āĻŦāϞāϤাāĻŦোā§° āĻ•ি? 

Answer:

8. Mention the limitations of consumer's surplus.

āĻ—্ā§°াāĻšāϕ⧰ āĻ…āϤিā§°িāĻ•্āϤ āĻĒā§°িāĻŽাāĻŖā§° āϏীāĻŽাāĻŦāĻĻ্āϧāϤা āωāϞ্āϞেāĻ– āϕ⧰া।

Answer:

9. How can producer's surplus be measured?

āĻĒ্ā§°āϝোāϜāϕ⧰ āĻ…āϤিā§°িāĻ•্āϤ āĻĒā§°িāĻŽাāĻŖ āĻ•েāύেāĻ•ৈ āϜোāĻ–া āϝাāϝ়?

Answer:

10. What is the effect of indirect taxes and subsidies upon consumer's surplus and producer's surplus?

āωāĻĒāĻ­োāĻ•্āϤাā§° āĻ…āϤিā§°িāĻ•্āϤ āφ⧰ু āĻ‰ā§ŽāĻĒাāĻĻāϕ⧰ āωāĻĻ্āĻŦৃāϤ্āϤ⧰ āĻ“āĻĒā§°āϤ āĻĒā§°োāĻ•্āώ āϕ⧰ āφ⧰ু ā§°াāϜāϏাāĻšাāϝ্āϝ⧰ āĻĒ্ā§°āĻ­াā§ą āĻ•ি?

Answer:

Long Answer Type Questions

āĻĻীāϘāϞীāϝ়া āωāϤ্āϤ⧰⧰ āĻĒ্ā§°āĻļ্āύ

1. Discuss the concept of consumer's surplus through cardinal utility approach.

āĻ•াā§°্āĻĄিāύেāϞ āχāωāϟিāϞিāϟি āĻĒāĻĻ্āϧāϤিā§° āϜ⧰িāϝ়āϤে āωāĻĒāĻ­োāĻ•্āϤাā§° āĻ…āϤিā§°িāĻ•্āϤ āϧাā§°āĻŖাāϟো āφāϞোāϚāύা āϕ⧰া।

Answer:

2. How consumer's surplus is measured through the ordinal utility approach ?

āĻ…ā§°্āĻĄিāύেāϞ āχāωāϟিāϞিāϟি āĻĒāĻĻ্āϧāϤিā§° āϜ⧰িāϝ়āϤে āĻ—্ā§°াāĻšāϕ⧰ āĻ…āϤিā§°িāĻ•্āϤ āĻĒā§°িāĻŽাāĻŖ āĻ•েāύেāĻĻā§°ে āϜোāĻ–া āĻšāϝ়?

Answer:

3. Distinguish between total utility and marginal utility. In what way is consumer's surplus based upon the distinction between them?

āĻŽুāĻ  āωāĻĒāϝোāĻ—িāϤা āφ⧰ু āĻĒ্ā§°াāύ্āϤিāĻ• āωāĻĒāϝোāĻ—িāϤাā§° āĻŽাāϜāϤ āĻĒাā§°্āĻĨāĻ•্āϝ āϕ⧰āĻ•। āϤেāĻ“ঁāϞোāϕ⧰ āĻŽাāϜ⧰ āĻĒাā§°্āĻĨāĻ•্āϝ⧰ āĻ“āĻĒā§°āϤ āφāϧাā§°িāϤ āϕ⧰ি āĻ—্ā§°াāĻšāϕ⧰ āĻ…āϤিā§°িāĻ•্āϤ āĻĒā§°িāĻŽাāĻŖ āĻ•েāύেāϧ⧰āĻŖে?

Answer:

4. Do you think the concept of consumer's surplus is realistic ?

āφāĻĒুāύি āĻ­াāĻŦেāύে āϝে āωāĻĒāĻ­োāĻ•্āϤাā§° āĻ…āϤিā§°িāĻ•্āϤ āϧাā§°āĻŖাāϟো āĻŦাāϏ্āĻ¤ā§ąিāĻ•?

Answer:

5. Explain the meaning and measurement of producer's surplus.

āĻ‰ā§ŽāĻĒাāĻĻāϕ⧰ āĻ…āϤিā§°িāĻ•্āϤ āĻĒā§°িāĻŽাāĻŖā§° āĻ…ā§°্āĻĨ āφ⧰ু āϜোāĻ– āĻŦā§°্āĻŖāύা āϕ⧰া।

Answer:

6. Analyse the effects of price control and rationing upon the consumer and producer's surplus.

āĻ—্ā§°াāĻšāĻ• āφ⧰ু āĻ‰ā§ŽāĻĒাāĻĻāϕ⧰ āĻ…āϤিā§°িāĻ•্āϤ āĻŽূāϞ্āϝ āύিāϝ়āύ্āϤ্ā§°āĻŖ āφ⧰ু ā§°েāϚāύ⧰ āĻĒ্ā§°āĻ­াā§ąāĻŦিāĻļ্āϞেāώāĻŖ āϕ⧰া।

Answer:

Very Long Answer Type Questions

āĻ…āϤি āĻĻীāϘāϞীāϝ়া āωāϤ্āϤ⧰⧰ āĻĒ্ā§°āĻļ্āύ

1. Explain Mashallian concept of consumer's surplus ? What are its underlying assumptions ? Mention some practical applications of the concept of consumer's surplus.

āωāĻĒāĻ­োāĻ•্āϤাā§° āĻ…āϤিā§°িāĻ•্āϤ ā§° āĻŦিāώāϝ়ে āĻŽাāĻļ্āĻŦাāϞিāϝ়াāύ āϧাā§°āĻŖাāϟো āĻŦ্āϝাāĻ–্āϝা āϕ⧰িāĻŦ āύেāĻ•ি? āχāϝ়াā§° āĻ…āύ্āϤ⧰্āύিāĻšিāϤ āϧাā§°āĻŖাāĻŦোā§° āĻ•ি? āωāĻĒāĻ­োāĻ•্āϤাā§° āĻ…āϤিā§°িāĻ•্āϤ āϧাā§°āĻŖাāϟোā§° āĻ•িāĻ›ুāĻŽাāύ āĻŦ্āĻ¯ā§ąāĻšাā§°িāĻ• āĻĒ্ā§°āϝ়োāĻ— āωāϞ্āϞেāĻ– āϕ⧰া।

Answer:

2. What is consumer's surplus ? What are the problem in its measurement ?

āĻ—্ā§°াāĻšāϕ⧰ āĻ…āϤিā§°িāĻ•্āϤ āĻĒā§°িāĻŽাāĻŖ āĻ•িāĻŽাāύ? āχāϝ়াā§° āϜোāĻ–āϤ āϏāĻŽāϏ্āϝাāϟো āĻ•ি?

Answer:

3. Discuss Hicksian measurement of consumer's surplus through indifference curves.

āωāĻĻাāϏীāύāϤা āĻŦāĻ•্ā§°ā§° āϜ⧰িāϝ়āϤে āĻ—্ā§°াāĻšāϕ⧰ āĻ…āϤিā§°িāĻ•্āϤ āĻĒā§°িāĻŽাāĻŖā§° āĻšিāĻ•্āϏিāϝ়াāύ āϜোāĻ– āφāϞোāϚāύা āϕ⧰া।

Answer:

4. Critically examine the concept of consumer's surplus.

āωāĻĒāĻ­োāĻ•্āϤাā§° āĻ…āϤিā§°িāĻ•্āϤ āϧাā§°āĻŖাāϟো āĻ—ুā§°ুāϤ্āĻŦāĻĒূā§°্āĻŖāĻ­াā§ąে āĻĒā§°ীāĻ•্āώা āϕ⧰া।

Answer:

5. Explain Hicksian conceptions of compensating and equivalent variations in income.
āĻ•্āώāϤিāĻĒূā§°āĻŖā§° āĻšিāĻ•āϚিāϝ়াāύ āϧাā§°āĻŖা āφ⧰ু āωāĻĒাā§°্āϜāύ⧰ āϏāĻŽāϤুāϞ্āϝ āϤাā§°āϤāĻŽ্āϝ āĻŦā§°্āĻŖāύা āϕ⧰া।

Answer:

6. What are the limitations of the concept of consumer's surplus ? Give its importance.

āωāĻĒāĻ­োāĻ•্āϤাā§° āĻ…āϤিā§°িāĻ•্āϤ āϧাā§°āĻŖাāϟোā§° āϏীāĻŽাāĻŦāĻĻ্āϧāϤাāĻŦোā§° āĻ•ি? āχāϝ়াā§° āĻ—ুā§°ুāϤ্āĻŦ āĻĻিāϝ়া।

Answer:

7. Explain clearly the concept of producer's surplus.
āĻĒ্ā§°āϝোāϜāϕ⧰ āĻ…āϤিā§°িāĻ•্āϤ āϧাā§°āĻŖাāϟো āϏ্āĻĒāώ্āϟāĻ­াā§ąে āĻŦā§°্āĻŖāύা āϕ⧰া।

Answer:

8. What are the effects of government policies upon consumer's surplus and producer's surplus?

āĻ—্ā§°াāĻšāϕ⧰ āĻ…āϤিā§°িāĻ•্āϤ āφ⧰ু āĻ‰ā§ŽāĻĒাāĻĻāϕ⧰ āωāĻĻ্āĻŦৃāϤ্āϤ⧰ āĻ“āĻĒā§°āϤ āϚ⧰āĻ•াā§°ী āύীāϤিā§° āĻĒ্ā§°āĻ­াā§ą āĻ•ি?

Answer:

9. Analyse the impact of market interventions by the government upon the market efficiency and welfare of the society.

āĻŦāϜাā§°ā§° āĻĻāĻ•্āώāϤা āφ⧰ু āϏāĻŽাāϜ⧰ āĻ•āϞ্āϝাāĻŖā§° āĻ“āĻĒā§°āϤ āϚ⧰āĻ•াā§°ā§° āĻĻ্āĻŦাā§°া āĻŦāϜাā§°ā§° āĻšāϏ্āϤāĻ•্āώেāĻĒā§° āĻĒ্ā§°āĻ­াā§ą āĻŦিāĻļ্āϞেāώāĻŖ āϕ⧰া।


Answer:






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