What is the economic term for the surplus generated when social benefits exceed social costs?

The correct answer is economic surplus. This term refers to the overall benefit that society gains when the total benefits from a good or service exceed the total costs associated with producing it. Economic surplus occurs when the value placed on the goods and services—including both consumer and producer perspectives—outweighs the resources expended in their production.

When social benefits, which include both private benefits enjoyed by consumers and any additional benefits to others in society, exceed social costs, this creates an environment where there is a net gain for society. In essence, economic surplus reflects the efficiency of resource allocation and indicates that more of the good or service can be produced and consumed without surpassing the associated costs, leading to greater overall satisfaction.

In contrast, consumer surplus pertains specifically to the additional benefit consumers receive when they pay less than what they are willing to pay for a product. Producer surplus refers to the excess revenue producers receive over the minimum amount needed to produce a good. Marginal benefit indicates the additional satisfaction gained from consuming one more unit of a good or service. While these terms reflect different aspects of economic transactions, they do not encompass the broader concept of the surplus generated when social benefits exceed social costs.