“The overall welfare of the society essentially depends on the individual utility level”- In the light of this statement, explain the various approaches of social welfare functions. How does public intervention can meet the problems associated with negative externalities? Explain with example how collective decision making is distinct from individual decisions making? On what basis an individual ranks various social states?
Introduction The welfare of society is a core concern in public economics. The assertion that “the overall welfare of the society essentially depends on the individual utility level” reflects a foundational idea in welfare economics — that individual preferences and well-being are the building blocks of societal well-being. This response covers the various approaches to […]