Welfare economics reveals key principles for just economic systems and fair distribution.
The article discusses how welfare economics evaluates economic policies based on efficiency and fairness. It shows that maximizing efficiency in resource use leads to higher social income. The concept of Pareto optimality is key, ensuring that resources are distributed fairly to match society's needs. Welfare economics also considers the Social Welfare Function to address multiple optimal outcomes. Overall, the study highlights the importance of balancing economic efficiency with social justice in policy-making.