Which of the Ten Principles of Economics does welfare economics explain more fully?
A)The cost of something is what you give up to get it.
B)Rational people think at the margin.
C)Markets are usually a good way to organize economic activity.
D)People respond to incentives.

Question

Quizplus · Accepted Answer

Welfare economics builds upon the principle that markets are usually a good way to organize economic activity by examining how efficient and equitable the distribution of resources within these markets is. It seeks to improve market outcomes and promote social welfare by analyzing the effects of different policies and interventions.

Which of the Ten Principles of Economics Does Welfare Economics