Question

Welfare economics is the study of Select one: a. taxes and subsidies. b. how technology is best put to use in the production of goods and services. c. government welfare programs for needy people. d. how the allocation of resources affects economic well-being.

Answer 1

Answer:

Correct option is (d)

Explanation:

Welfare economics deals with the study of distribution of resources affect the overall welfare of the society and economy as a whole.

It is a part of economics that studies the role of government in aligning policies for the welfare of the society and ensuring that every section of the society is equally developed.

The concept was developed as inequality in distribution of wealth and resources was observed across different sections of the economy. Poor was becoming poorer and rich, becoming richer. This hampered overall growth of the economy, thereby giving birth to welfare economics.