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• W2487110403 abstract "This chapter focuses on general equilibrium and welfare economics. The traditional definition of economics usually involves the “efficient allocation of resources.” This allocation process is carried out through decisions concerning production and consumption. The efficiency propositions concerning consumption in a general equilibrium context are similar to those of the Pareto criteria for efficiency in production. A consumption point along a production frontier is considered efficient if moving to another point makes at least one person better off, without making another worse off. All points along a production frontier are efficient as far as production is concerned, but not all points are efficient from the point of view of utility to consumers. To analyze the implications of efficiency in consumption, the chapter uses the Edgeworth-Bowley diagram. Welfare economics deals with the optimal allocation of resources in an economic society using a set of propositions suggested for the maximization of societal utility or welfare. As a society consists of many individuals, and usually no two are alike, it is very difficult to arrive at a societal utility function." @default.
• W2487110403 created "2016-08-23" @default.
• W2487110403 creator A5076006116 @default.
• W2487110403 date "1980-01-01" @default.
• W2487110403 modified "2023-09-27" @default.
• W2487110403 title "GENERAL EQUILIBRIUM AND WELFARE ECONOMICS" @default.
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• W2487110403 doi "https://doi.org/10.1016/b978-0-12-465150-0.50022-8" @default.
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