Explain the concept of welfare economics.

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Explain the concept of welfare economics.

Welfare economics is a branch of economics that focuses on the well-being and welfare of individuals and society as a whole. It analyzes how the allocation of resources and the distribution of goods and services affect overall welfare. The concept of welfare economics aims to determine the most efficient and equitable allocation of resources to maximize societal welfare. It considers both efficiency, which refers to the optimal allocation of resources, and equity, which refers to the fairness of the distribution of resources. Welfare economics also examines the impact of market failures, externalities, and government interventions on welfare.