Welfare economics is the study of
A)the well-being of less fortunate people.
B)welfare programs in the United States.
C)how the allocation of resources affects economic well-being.
D)the effect of income redistribution on work effort.

Question

Quizplus · Accepted Answer

Welfare economics is the study of how the allocation of resources affects economic well-being, including issues related to market efficiency, equity, and income distribution. It is not limited to studying the well-being of less fortunate people or welfare programs in the United States, although these may fall under the broader scope of welfare economics. While welfare economics may consider the effect of income redistribution, it is not limited to that particular topic.

Welfare Economics Is the Study of