Welfare Economics is a branch of economic theory that focuses on the allocation of resources and goods to improve social welfare. It seeks to evaluate the economic well-being of individuals and society as a whole, often using concepts such as utility and efficiency. One of its primary goals is to assess how different economic policies or market outcomes affect the distribution of wealth and resources, aiming for a more equitable society.
Key components include:
Welfare economics often grapples with trade-offs between efficiency and equity, highlighting the complexity of achieving optimal outcomes in real-world economies.
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