Efficiency and Welfare
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Module 1: Introduction to Economics

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Efficiency and Welfare

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XSIQ
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Economics - Efficiency and Welfare

Efficiency and Welfare

Resources are said to be allocated efficiently if consumer satisfaction is
maximised and opportunity cost is minimised. If resources are being
efficiently allocated, more goods and services will be produced, and so
more goods and services will be consumed. Individual and collective
consumption together contribute towards the economic welfare of the
community.

Economic welfare, however, is more than just increased production. Social
justice [1] has to also be considered. The economic welfare to the
community is determined not only by the amount of goods and services
available to satisfy wants and needs, but also by the way these goods and
services are distributed to individuals and groups within the community. If
we are better off, then maximisation of economic welfare has been
achieved.

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Links:
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[1] http://alison.com/#

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