Advantages And Disadvantages Of The Baning Of Somiking...

Advantages and Disadvantages of the Baning of Somiking...
According to the article, the Houston Housing Authority has placed a smoking ban on public
housing properties, whereby "residents can no longer smoke inside their homes, nor within 25 feet
of a main entrance". This is an example of an externality, a side effect on third–parties caused by
production or consumption activities. This is a negative consumption externality, where the marginal
private benefits (benefits to consumers of consuming one more unit of a good) are greater than the
marginal social benefits (benefits to society of consuming one more unit of a good. The externality
causes welfare loss, a loss to society as a result of misallocation of resources, as shown in Diagram
1, where for every unit of output, marginal private benefits (MPB) are greater than marginal social
benefits (MSB). The vertical difference between MPB and MSB is the external cost to society. For
this reason, there is a welfare loss; the market overallocates resources to the production of cigarettes
at units greater than Q/optimum, which is the socially desirable equilibrium, as there is market
efficiency. However, because MPB represents actual demand, the equilibrium is at the intersection
of S=MPC=MSC and D=MPB, at P/market and Q/market.
The reason the marginal private benefits of smoking are greater than the social ones is because
smoking has external costs affecting others; they not only affect their own health and get lung
cancer, but can also cause lung cancer to others.This is
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The Issue Of The United States ( U.s. )
I. Explanation of Issues What is the main problem/question at issue in this article? The main
problem at issue in the article is that the United States (U.S.), as a country, are still largely
employing the Gross Domestic Product (GDP) to measure the welfare of the nation although the
welfare of a nation can scarcely be inferred from a measurement of national income. What are some
of the subsidiary, embebbed, or implicit aspects of the problem, and what are their relationship to
each other? There are also other aspects to the problem. These aspects include: (1) the Congress did
not heed Simon Kuznets's warning about how little GDP is connected to welfare of the nation; (2)
Americans only came to know more about limitations of the GDP in measuring their well–being
after Great Recession; and (3) there is the emergence of a suggestion to implement alternative
measures that more accurately reflect the progress of human well–being. These aspects are related to
one another. The Congress's initial ignorance led to the eventual late discovery about how the GDP
has its limits. This in turn led to the creation of or debate for other measures of welfare. This shows
how the movement for alternative measures to human well–being is being triggered. This would
then introduce the idea of including more factors other than national income into the measurement
of well–being. For instance, according to Genuine Progress Indicator (GPI), the well–being of
individuals is comprised of economic,

Welfare Spending During The United States
Welfare spending in the United States of America has been realizing negative effects on the
economic standing of American society as a whole, more specifically in terms of long term growth
in poverty rates and high levels of unemployment.
As of the report for fiscal year 2011, the total funds spent for the "federal welfare programs
amounted to roughly $ 1.03 trillion. . . This excludes entitlement programs to which people
contribute (e.g. Social Security and Medicare)", according to Sessions, J. (2011, p.1). SS
expenditures in 2011 was $725 billion while for Medicare, it amounted to $ 480 billion. The
analytical findings of Brady, D.( 2009, p.81) stated that "As countries devote a larger share of their
economy to welfare, poverty declines steeply." This happened to Scandinavia, Finland, and Sweden,
and European continental countries like Netherlands and Belgium. USA was identified to have high
poverty and low welfare expenses. He also made clear that poverty is not necessarily increased by
higher welfare generosity.(p.84) and further says that it benefits all rather than just "the elderly or
men" (p.87). The 5 features of welfare state were historically proven to reduce poverty through
greater generosity with (1) social welfare expenditures, (2) expenditures for public health, (3) social
security, (4) government expenditures, and (5) "decommodification" (p.91). Brady, D. (p.92) also
contends that public employment is less effective than welfare state generosity as a

Cause Of Government Failure
Government failures is said to be the loss resulting from government intervention in the
marketplace. The failure is an outcome of policies that are used to regulate trade which create
systemic inefficiencies and economic costs that adversely affect a product's manufacture and sales.
It is basically is an economic concept, similar to market failure, but it is more damaging.
Government failure occurs when a ruler forces people to do things that the people are otherwise
unwilling to do and the results are inefficient and ineffective for the society.
Each country has its own flow of things from the president to the federal and public administrators.
The flow chart of Pakistan represents that there is democratic government which is obviously being
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The estimated social benefits of a particular policy might be largely effected by the administrative
costs of introducing it.
8– Tragedy of the Commons
Anything owned by the government has a tendency to be overused and under serviced. Private
ownership will protect the asset better and will manage its use better. And hence, it will cause a huge
government failure.
9– Legislation Process
Another major cause of government failure is the legislative process itself, since it allows legislators
to insert preferential items into large complex bills where other representatives are forced to either
vote for or against the bill as a whole. Legislators cannot approve the bill without also approving the
line items, so if the overall bill is desirable, then legislators will probably approve the bill in spite of
the objectionable line items.
10– Corruption:
In most of the developing countries, either the govt. or the officials of government tried to corrupt
with the society and hence prove the inequality between other people. This cause the government
failure and the society fairness vanish away.
 Key points about government

The First Fundamental Theorem Of Welfare Economics
Introduction When studying market structure, the First Fundamental Theorem of Welfare Economics
states that markets will distribute resources efficiently if the following conditions are met: the
market is perfectly competitive, there are no externalities or public goods, markets are complete, and
there is no asymmetric information (Gruber, 2013). If a healthcare market complied with these four
pillars of the First Welfare Theorem, a healthcare provider's choice of output would not affect the
price of the service, ultimately leading to Pareto efficiency. As seen in Figure 1, the consumer
demand curve would be horizontal, as average revenue, marginal revenue, and price would be the
same, constant value.
Figure 1: Perfect Competition ... Show more content on Helpwriting.net ...
If the provider produces one extra unit of a good or service, the overall price decreases. The provider
receives a lower price for infra–marginal goods, or the goods that would have been sold without
reducing the price (Png, 2012). For example, if a healthcare provider chooses to increase production
from 100 units to 200 units, the price must be reduced from $50 to $40. The provider will gain
revenue (100 x $40= $4,000) from the additional units, but will lose ($50–$40) x 100= $1,000) the
100 infra marginal units that the provider could have sold at the higher price. So, average revenue
for the provider will be $40, while marginal revenue will be $30. Thus, average revenue and price
remain equal, while marginal revenue now falls below the price curve (Png, 2012).
Figure 2: Marginal Revenue Curve vs. Average Revenue Curve in a Monopoly In order to determine
price, the monopolist utilizes the inverse demand curve, also known as the average revenue curve.
This curve reflects the price the provider would need to charge to produce demand at a particular
level. Thus, the average revenue curve dictates what price the next unit can be sold at, while the
marginal revenue curve reflects how much additional revenue is received for selling the next unit
(Schwartz, 2010). As can be seen in Figure 3, since marginal revenue does not equal average
revenue, the monopolist will set the quantity supplied where marginal revenue is equal to marginal
cost. However, it will

Saint Leo Core Values Support Economic Welfare And Social...
It is a well known fact that Gross Domestic Product (GDP) is the best way to measure a country's
economy. First, I'll discuss what GDP measures and it's limitations. Continuing, I'll talk about the
difference between economic welfare and social welfare, their relationship, if any, and which one
you think is more important. Lastly, discuss whether I believe the Saint Leo core values support
economic growth and productivity. Let us begin with gross domestic product and its limitations.
Gross Domestic Product (GDP) is measures the total value of all final goods and services produced
within a country's borders. It is used worldwide and by far the most popular method for measuring
an economy's output. For example, "Australia's economy has experienced

Welfare And The Government 's Contribution Towards Poverty
Government aid is a hotly debated topic. Crossing the bounds of politics, economics, and sociology,
it seems like everyone has an opinion about welfare and the government's contribution towards
alleviating poverty. Amongst all these opinions, a person can get confused on what is fact and
fiction, who is right and who is wrong. However, with actual data accredited to unbiased sources,
and references to qualified studies, I have confounded enough evidence to support my claim. I found
that despite opinions, according to the facts, welfare does help alleviate poverty.
According to the article Ending Welfare as We Know It: A Reform Still in Progress, in the long
term, as more aid is given the poverty rate declines. Less people are stuck in poverty, and on average
the number who use federal aid declines, resulting in a decline in poverty. The focus of the source
was to figure out whether or not the reforms in welfare did anything to help alleviate poverty. This
article references statistics taken by the U.S Census bureau. According to the U.S Census bureau,
through utilizing welfare policies such as Medicaid, the number of citizens reliant on in the USA,
dropped by 945,900 from in between 1996 to 1999. Thus showing that welfare does help those in
poverty, and in the long run helps them get themselves above the poverty threshold and off of
welfare. The author of the article, James Caraley is the President of the Academy of Political
Science; and the unbiased factual evidence is

Benefits Of An Emissions Tax Or A Tradable Permit Policy...
Beyond environmental issues related to poverty are those that can increase from economic growth
itself as countries become more industrialized, rise their agricultural production, and spend greater
amounts of fossil fuels, the environment often suffers. The challenge facing policymakers
worldwide is to control economic growth in a way that increases its benefits and reduces its costs, in
terms of harm to both the environment and to the free market system. (Dahlberg,2012). This essay
will argue that either an emissions tax or a tradable permit policy can achieve the best solution for
the environment. Booth tax and tradable permits have benefits and drawbacks. Taxes leave
businesses and consumers with flexibility to determine the lower cost to reduce the environmental
harm. Nevertheless, Pollution permits give the incentive to develop new technologies aimed at
inexpensively reducing pollution and it is more effectively than taxes.
In economics, an externality is a cost or benefit that influences a party who did not choose to incur
that cost or benefit. Moreover, negative externality accrues when the production or consumption of a
good cause harmful influence to a third party, sometimes these effects are indirect and tiny.
However, when they are large, they can become problematic. Furthermore, in the case of pollution,
usually an example of a negative externality, a polluter makes resolutions based particularly on the
direct cost and profit opportunity from production and

Methodology
ECON 172 REPORT
METHODOLOGY
"What weights should society apply to cost and benefits occurring in future time periods relative to
the present period?"
INTRAGENERATIONAL DISCOUNTING * Consumption rate of interest cum shadow price of
capital method (CRI–SPC Method) * The level of public investment should be based on individual
preference for present consumption vs. future consumption * The marginal rate of time preference *
Investment is simply a means of using resources that are potentially available for consumption now
in order to increase consumption later * Individuals typically have a positive rate of time preference
* They demand compensation when forgoing present for future consumption * SDR ... Show more
content on Helpwriting.net ...
Then the CRI–SPC method = Discounting at the ROI * But some if not all costs will displace
consumption, thus this method is generally invalid * WSOC Method * SDR = weighted average of
the CRI and the ROI * It will not give the same NPV as using the CRI–SPC method * Different
rates of after–tax return and before tax marginal return to private investment
DISCOUNTING USING THE OPTIMAL GROWTH RATE METHOD (OGR METHOD) * First
reason for rejecting CRI–SPC method: rejects the notion that social choices reflect individual
preferences as inferred from market interest rates * Because capital markets are not perfect and
individual consumers do not behave as assumed by the standard economic model of intertemporal
choice * Not only do borrowing and lending rates differ due to taxes and transaction costs, but some
individuals are screened out of legitimate credit markets altogether due to informational
asymmetries * Individuals differ in both their rates of time preference and in their opportunities *
Because many

Economic Development And Development Of Welfare
When discussing the origins of welfare states it is easy to make an assumption that the development
of welfare states was in direct response to social needs brought by industrialization and economic
development. In fact the early scholarship in social policy did not question the causational effect
between economic development and development of welfare states. Understanding that economic
development alone cannot sufficiently explain why some countries developed into full welfare states
while others did not prevail until the emergence of social democratic theory and its further
expansions. Based on the later studies, the economic development was a necessary cause and played
the role of creating the need and the resources for social provisions while politics was sufficient
condition which determined whether social needs would be addressed though creation of welfare
state of other types of social provisions. Looking back in history, while economic development did
not invent poverty, it change its nature by making it difficult for families to take care for the
disabled, elderly, and unemployed. More specifically, it led to a decrease in labor–force participation
in agriculture, rapid spread of self–regulating labor market, urbanization, destruction of traditional
social protections, commodification of labor, and the emergence of a new social category of the
laboring poor dependent on the insecure labor market. In addition to establishing the above–
described functional demand

Government Intervention in Agriculture Industry in...
Nowadays in Indonesia, Fruits and vegetables have become rare items due to slow distribution and
poor transportation (TheJakartaPost, 2010). This will cause price of fruits and vegetables to increase
due to shortage of supply. Not only that, inequality in distribution of income by farmers has take
place due to lack of capital acess (TheJakartaPost, 2010). The market economy requires institution
such as government to implement policies and making decisions to maintain market and avoid
market failures like monopoly and negative externalities. Government intervention such as decision
to guarantee continuous supplies of horticultural products will not only complement the high
demand and needs for nutrition by society, but it will also avoid ... Show more content on
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While due to shortage in their supply, in June 2010 prices of rice and chili have increased by 2.67%
and 45.7% (BPS, 2010). It indicates that price mechanism has been working along side with less
government intervention included. If this continues, not only price will increase due to high demand
and scarce of goods, but it will also affect the amount of nutrition taken by society, where fruits and
vegetables are the staple food of daily diets. This clearly shows that action has to be done by the
government, to varying people's diet and to improve nutrition, and also to stabilize the prices of
horticultural products as well.
Government is working on a bill to improve fruit and vegetables supplies, in order to guarantee a
continuous supply of horticultural products and to improve market outcome by facilitating better
capital access, financing and providing guarantees (TheJakartaPost, 2010). These will prevent
shortage of supply in market and will avoid prices to increase. Government will also have to come
out with policy in order to achieve goal of equality. Dadi Sudiana, chairperson of Chili Agribusiness
Association stated that "We always [profit less] from high priced staple foods such as red chili".
Things get worse when farmers are forced to split their profit with brokers (The

Welfare Essay
Welfare1 The United States or The United Welfare States – A Cost Benefit Analysis
The role of welfare within our society has always been controversial. This problem emphasizes the
need to understand the roles of variable factors when pertaining to the subject of welfare within our
society. The proposed analysis will address the phenomenon of welfare assistance and several
factors which may contribute to the increase or decrease of welfare assistance to the poor in 4 ways:
(1) by defining major concepts and any other concepts about which there is likely to be
misunderstanding, (2) by further examining the past history pertaining to the subject of welfare
assistance within the United States, (3) by developing the formulation of ... Show more content on
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But, regardless of how it is used, the preparation of a cost benefit analysis provides a useful
framework for consideration of the possible effects of a proposed policy.
Past History of Welfare Assistance: One of the first welfare programs to provide income support to
the poor was a federally backed plan called the Aid to Dependent Children (ADC) program. This
legislation was introduced with the establishment of the Social Security program during the Great
Depression. (Rowley, and Peacock 43) The ADC program which had started nearly sixty years ago
is now better known as the Aid to Families with Dependent Children (AFDC) program, which
provided a federal entitlement to economic support for single parents with children younger than 18
who fell below a threshold of assets and income (Rowley, and Peacock 44). Federal guidelines
allowed for each state to set its own predetermined needs standards for families of different sizes
and living locations. Both the federal government and the states supplied funding for the AFDC
program (Rowley, and Peacock 50). In 1996 Congress adopted the Temporary Aid to Needy
Families (TANF) program by enacting the Personal Responsibility and Work Opportunity
Reconciliation Act that ultimately changed the structure of federal financial assistance to the states
thereby abolishing the AFDC program. Another social welfare program was the Supplemental
Security Income (SSI) program. Congress

Ecological Economics Vs. Neoclassical Welfare Economics Essay
Ecological Economics vs Neoclassical Welfare Economics
In the past, the economic school of thought regarded the resources as unlimited and focused on more
production under the light of the unlimited growth assumption. Every economic action was
suggested to only consider about making more profit. While the economy and the human population
are growing; more natural resources are used and more pollution is observed. Human become to
deal with the results of its production such as environmental problems and resource scarcity. A
debate has emerged in economics and the mainstream economics is brought into question since its
unlimited growth assumption is collapsed. Ecological economists argue the neoclassical welfare
economics for ignoring the environmental and ethic values by only focusing on the cost–benefit
analysis. It also claims that the neoclassical economics fails to calculate the value of the
environmental capital and the loss of the economic activities on the environment. This paper is
going to explain the problems with the neoclassical welfare economics and the alternatives offered
by the ecological economics in terms of economic growth and environment.
The neoclassical welfare economics explains the economic production and behavior by using the
mainstream terms of economic literature. Specifically, it focuses on the Pareto efficiency and
suggests two theorems related to it. Firstly, the Pareto efficiency is stated by maximization of
preferences under a restricted

Perspectives On Wellbeing And Genuine Progress Indicator...
Rethinking What Counts. Perspectives on Wellbeing and Genuine Progress Indicator Metrics from a
Canadian Viewpoint Wilson & Tyedmers (2013) discuss how recently the economic growth model
has been criticized, which has lead to rethinking how economic success and social wellbeing are
measured. Improved metrics have aimed to integrate social, environmental, and human–welfare in
order to properly account for potential costs of economic growth (Wilson & Tyedmers, 2013).
Wilson & Tyedmers (2013) discuss the attempt to improve macroeconomic metrics and indicators
with focus on the Genuine Progress Indicator (GPI) drawing on Canadian examples. GPIs adjust the
GDP model by subtracting social and environmental costs, adding the value of goods and ... Show
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Making adjustments to these methods and communicating their importance in an efficient way are
going to be important in the future to get more individuals behind the idea. I do question alternatives
to GDP because not everyone weighs things the same when it comes to wellbeing therefore the use
of these methods nationally or even locally might be unjustifiable. A theoretical foundation to
support the Index of Sustainable Economic Welfare (ISEW), Genuine Progress Indicator (GPI), and
other related indexes Lawn (2003) describes that ecological economists have developed alternative
indexes due to the inadequacy of GDP as a measure of human progress, which can be use to
measure and compare the benefits and costs of growth. These alternatives to GDP such as the Index
of Sustainable Economic Welfare (ISEW) and Genuine Progress Indicator (GPI) support the
'threshold hypothesis' but they have faced criticism based on lack of theoretical foundation (Lawn,
2003). Lawn (2003) compares GDP, the Sustainable Net Benefit Index (SNBI), and ISEW/GPI to
the concept of income and capital as outlined by Fisher (1906) to argue that macroeconomic
alternative indexes are theoretically sound. The Fisherian view believes economic welfare depends
on 'psychic' enjoyment of life and not on production or consumption rate (Lawn,

The Global Financial Crisis And Protectionism
Title: The Global Financial Crisis and Protectionism
Question: During 2008~2009 many developed nations gave subsidies to their automobile producers.
How might this have distorted international trade? Was this a reasonable thing to do given the
circumstances?
Introduction
There was an empirical research study on the effect of protectionism on the Gross Domestic Product
(GDP) in the United States (US). According to National Bureau Of Economic Research, "a
generalized 10 percent hike against emerging Asia improves the US current account balance as a
share of GDP by a mere 0.1 percentage point. The effect disappears after about two years, and in the
absence of further adjustment in net saving, it may even revert sign." So it implies that the
protectionism has many negative aspects on one's economy contrary to the nation's belief. I could
find reasons why protectionism affects international trade in negative ways from several research
papers. In this paper, I tried to verify those reasons by using certain economical models.
1. Protection measures benefit domestic producers and affiliated other parties, but society pays the
price.
Assumption 1) Domestic and foreign automobile products are a perfect substitution. 2) Government
offers the domestic producers subsidies by "s" per every produce.
In order to protect less competitive domestic automobile producers, the government offers subsidies
to them. It makes the domestic automobile producers feel that cost is reduced and

Welfare Definition Of Economics By Alfred Marshall
WELFARE DEFINITION OF ECONOMICS
About the Author: Alfred Marshall (26th July 1842–13th July 1924)
The Welfare Definition of the subject of economics was put forward by the pioneer neoclassical
economist from England, Dr. Alfred Marshall, in his book 'Principles of Economics' published in
1890.
Marshall, who was born in the London suburb of Clapham, was educated at Merchant's Taylor
School. He showed tremendous mathematical aptitude and participated in Cambridge University's
most revered degree competition– Mathematical Tripos, where he secured the second rank, bettered
only by Lord Rayleigh. This secured a position of fellow in St. John's University, Cambridge and
along with mathematics, he got himself involved rigorously in the study of philosophical
foundations and moral basis of human behaviour and social organisation. He became a lecturer of
Moral Sciences at St. John's in 1868, with a specialisation in 'Political Economy', as Economics was
then called. He henceforth worked tirelessly in transforming the subject into a more logical and
scientific one. Marshall met Mary Paley, a student in the informal lectures for women by the
Cambridge University and taught her Political Economy. In 1877, they decided to get married and
this forced Marshall to leave his position in Cambridge due to the celibacy rule in place. He joined
as the first Principal at University College, Bristol; which later came

Intra And Inter Generational Equity
INTRAAND INTER GENERATIONAL EQUITY IN THE ANTHROPOCENE
Introduction
Anthropocene era is minuscule compared to geologic era but has already made huge impact upon
world 's ecology and physical resource. Creating and maintaining some mechanism to prevent
runaway consumption and misuse of resource is paramount to ensure justice and equity among
population of present as well as future generation. Without such mechanism, people tends to become
self centered and they act without any regard for others; creating imbalance in resource use and
social order within space–time continuum.
Intra generational equity deals with equity and justice issues within present generation, while inter
generational equity is about ensuring equity and justice among generations without any concomitant
presence on Earth.
Intra generational equity
Munasinghe (2007) described intra generational equity perfectly as an interrelating function of
economic and social equity.
Figure: Sustainable Development Triangle (Source: Munasinghe, 2007)
From Economic perspective, although Panzer (1978) introduced Pareto–Efficient–Egalitarian–
Equivalent–Allocation (PEEE), which theoretically works quite well with fair and efficient resource
allocation and production economies while having excellent Rawlsian maximin properties as well;
real life scenario is dominated by capitalism. Present economic sustainability concept tries to
maximize income flow while preserving stock of assets or capital as much as possible.

The Economic Benefits Of Economic Welfare Essay
Economic welfare is defined as the well–being or standard of living of an individual or individuals
taking part in an economy (Business Dictionary, 2015). This can be measured through statistics such
as individual income, health care expense, educational achievement and opportunity for economic
growth. The better one fares among these categories, the more likely one is to have a higher standard
of living and possess an inherent socio–economic advantage. Currently, the aboriginal population
scores poorly across all of these standards. Despite government incentives, the average indigenous
person is born into an economic disadvantage with little room for vertical movement, indicating a
need for major social and legislative change.
Among the aboriginal population in 2005, 18.7% of individuals living with family were below the
poverty line. Unattached, or single, individuals were even more likely to fall into this low–income
bracket at 42.8%. Conversely, these rates among the non–aboriginal population were 8.4% and
28.0% respectively (Collin & Jensen, 2009). These numbers highlight the economic disparity
Aboriginals face, the cause of which lies rooted in their historical mistreatment. To better understand
the situation today and how it came to be, one must begin by looking at early Canadian policy
involving Aboriginals.
The first important document concerned with indigenous rights was the Royal Proclamation. Signed
in 1763, it recognized the sovereignty of the aboriginal

Disadvantages Of Americanization
Although America was able to gain much political power through its ever–growing economy there
were many social costs during the process of growth and wealth creation, which are the negative and
undesirable effects of large US corporations (Galambos, 933). One disadvantage of the American
corporate system is the tendency towards monopolization within the market (Galambos, 933). This,
in turn, will create oligopolies within industries and thus there will be little chance or incentive for
competition (Galambos, 937–38). Little plurality of firms dominating the economy is problematic as
economic power is so closely tied to political power (Galambos, 937–38). Now, in an international
framework, as a nation, it is quite arguable why this would be ... Show more content on
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The author describes the adaptation of European countries to this new "American" challenge of
increased efficiency to promote growth and profit within their economy (44). The incentive has been
to catch up with American prosperity by adopting certain features that characterize huge profit–
generating corporate firms that are the ones responsible for the ever–increasing growth of the US
economy (44). However, he highlights that in actual times, although the European corporate system
has successfully adopted parts of the American style corporate structure, it has hybridized them with
socialist values and features (44). European states have been selective in the process of doing so in
order for the system to work successfully within national preconditions and at the same time
ensuring it would not undermine the social welfare that characterizes European economies

1. In Which Of The Following Markets Do You Pay Efficient...
Discussion Questions: An economy may be inefficient for two reasons – market power and
nonexistence of markets. (p. 46)
1. In which of the following markets do you expect efficient outcomes? Why
a. Hurricane insurance for beach houses: Efficient outcomes because individual that build a house
on the beach would more than likely acquire some type of insurance, for example, flood insurance,
knowing that hurricanes can destroy everything. You would expect that the market for flood
insurance would function fairly efficiently.
b. Medical care:
c. Stock market – Efficient outcomes; because it not a monopoly market.
It's not a market with only one seller of a good. It has lots of buyers and sellers. So you would
expect efficient outcome.
d. MP3 Players – Efficient outcomes because it's not a monopoly market because of other
competitor. There are a lot of companies that sells players, however, for MP3 you have consumers
who would prefer MP3 over the other brands, so, more than likely you would expect efficient
outcome.
e. Loans for students who wish to attend college
f. Housing – I ... Show more content on Helpwriting.net ...
The change would raise the insurance rates of rural and suburban residents, and lower the rates of
urban residents. Is such a policy efficient? This is an example of the Pareto efficient wherein an
allocation of resources such that no person can be made better off without making another person
worse off. Is it likely to improve social welfare? It's not likely to improve social welfare because
social welfare function summarizes society's preferences concerning the utility (Happiness) of each
of its member. So, if you raise insurance rates of rural and suburban and lower the insurance rates
for urban would be unfair since the regulation prohibit pricing insurance rates on geographic

Welfare And Economic Security
Welfare and economic security are issues that have plagued every society, if an individual is too old
to work, disabled, the family 'bread–winner' dies, or is involuntarily unemployed, societies have to
deal with this, and usually the government has to step in to fix this issue (DeWitt 2010). The United
States is a very interesting society to watch deal with a problem such as inequality as "social and
economic inequality has marked the American experience" (Lewis 1993, pg. 4). The individualist
and self–reliant mindset emphasises the idea that individuals have the equal chance to wind up
unequal (Lewis 1993). Equal opportunities for everyone mean that if you fail to take care of your
family, it is no ones fault but your own. However, this ... Show more content on Helpwriting.net ...
This is reflected in aspects of American life such as private property, the free market, and welfare.
Because of this, there has always been a distrust of government, gaining too much power and
controlling the American way of life too much, and limiting the result of pure individualism. The
gruelling system of checks and balances was put in place to control this very fear. The prospect of
equal personal opportunity developed in the late nineteenth century, with names such as Ford,
Carnegie, and Rockefeller made it big in their fields, after starting from so little in life (Lewis 1993).
If an individual pursues their own self–interests, they will indirectly promote the good of society
(Smith 2013).
The individualistic nature is ingrained deep in the American psyche and lifestyle. America has
always been the land of 'equal opportunity' for all. Society is benign and what you achieve in life is
all on you. When it comes to the free market, the government is kept at bay, only stepping in to
control monopolies from corrupting the system. When the market is left alone, it will adjust, this is
the same mindset Americans have about themselves, leave people alone and they will adjust and get
through themselves. America is a country based around fear. Fears of an imperial presidency
emerging, of the government gaining too much power, and of the people rebelling. Inequality of
initial opportunity is not taken into account. Parents give their kids every head start in life that

The Is Not A Silver Bullet
From politicians considering new infrastructure projects to young adults considering starting a
family, the cost–benefit analysis has been touted as a cure for indecision. Based on seemingly firm
economic and philosophical foundations, use of the method has become a ubiquitous part of modern
society's decisional endeavors. Whether it focuses directly on financial gain or on interpretations of
nonmonetary changes in wellbeing, this type of analysis provides a framework that allows
individuals to confidently make decisions of all varieties and levels of importance. The reality,
though, is that cost–benefit analysis is not a silver bullet. At its core, as Hausman and Mcpherson
state, it is predicated on a repressively "narrow" evaluative ... Show more content on Helpwriting.net
...
64).
A preference refers to an agent's orientation towards some outcomes over others–their ranking of
some outcomes as more desirable than others (Crisp, 2013). Strictly defined, "an agent "prefers x to
y if and only if [he or she] believes that x is strictly better...than is y" (Hausman and McPherson,
1996, p. 64). In the search to narrow the gap between what they consider to be their ideal and the
circumstances in which they currently reside, agents are supposed to take the action they believe to
be instrumental in satisfying the preferences they hold. By supporting the fulfillment of these
desires, modern welfare economics seeks to best satisfy all people, leading to the best state in the
aggregate.
In practice, the framework has been used in both the justification of macroeconomic philosophies
and microeconomic decision making. One of the most notable applications of modern welfare
economics is that of free market justification. The most direct implementation of the theory in such a
manner can be seen in the Pareto efficiency justification for free markets. The rationale for this
perspective is that free markets are justified because they, being composed of rational and free
agents that should only endeavor to partake in interactions that better satisfy their preferences, lead
continually to a state in which more preferences are satisfied.
These functions, transactions in which no party is left in a position of lesser preference satisfaction
and at least one part is

The Economic And Social Welfare Of The Indian Ocean
1. This project is set up in Sri Lanka which is an island nation and in the Indian Ocean located in the
southern part of the Indian subcontinent. The project mainly focuses on Colombo where the
commercial capital of Sri Lanka is. According to the "Global Challenges in Engineering" (Baillie &
Armstrong, 2016), the population of Colombo was 5.36 million in 2002. Benefit from the open
market policy published by new government, the economic condition was improved significantly.
The population of Colombo increased dramatically, too. But at the same time, large number of lower
class people in Colombo and increasing waste disposal are the problems that Colombo Municipal
Council has to face with. Waste collectors are such a group of people who are identified as lower
class and taking main part jobs of waste recycling in Colombo because of poor regulation and
supervision of waste disposal and waste recycling system. Our project aims to better the economic
and social welfare of waste collectors of Colombo through better waste management, or in other
words, to improve the living standard and efficiency of the waste collectors in the informal waste
sector. The ideal result of this project is to provide them with better living standards, higher income
levels, a more efficient method of recycling waste, and finally to reduce the waste by our design and
teamwork
2.1 As mention above, the project locates on Colombo, the economic center and the biggest city of
Sri Lanka. It is a coastal

A Brief Note On The City Of London
Exploring an Interdisciplinary Approach to Redeveloping the City of London, England This research
report compiles studies from various disciplines regarding culture, social and economic concerns,
the built environment, and the impact of urbanization in a growing city: London, England. The
purpose of this report is to express the positive outcome that can occur when ethically redeveloping
"urban brownfields" or derelict real estate by taking public policy, risk assessment, funding,
historical knowledge, and cultural sensitivity into account over the course of the project. With the
recent credit crunch due to loan defaults, the property market has suffered severely in its ability to
provide affordable housing. International investors have invaded the property development scene in
London to take advantage of available land and are causing forceful demographic changes by
attracting buyers with more spending ability than local Londoners. This in turn will cause friction in
the relationship that London's society has with its built environment. Throughout this report, I will
explain how culture is effected when society's relationship with its surrounding environment
changes and how ethical urban regeneration can stay true to the culture, whilst having a beneficial
impact on social welfare. In order to have this effect, project managers must assess finance methods
for development, current demographics, urban heritage, contamination levels, externalities, and
cultural ecology

Potential Solutions For High Youth Unemployment
Question How can the high levels of What are potential solutions for high youth unemployment in
Australia be solved, and what are its implications on inequality for young Australians? I.
Introduction High levels of unemployment have many negative effects, including rising inequality,
which is a major issue in developed economies such as Australia (REF). Income, and wealth
inequality are the two main types of inequality examined in economics. Income Distribution Income
distribution refers to how the total income of a nation is distributed between the population. An
economy with high income inequality will have the majority of the income distributed to a minority
of the population (REF). Income distribution can be graphically illustrated ... Show more content on
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Economies attempt to maintain unemployment as low as economically sustainable (referred to as the
natural rate of unemployment), because high unemployment creates several issues in an economy
(REF). Both unemployment and underemployment are heavily linked to high levels of inequality, as
such young Australians are more likely to experience inequality (REF). The focus of this inquiry
will be on inequality and unemployment in young Australians. II. Issues High unemployment (and
underemployment) have several costs on Australian society. One of the key impacts of high
unemployment are the heightened levels of inequality (REF). As young Australians experience
higher unemployment (and underemployment) than the average Australian, they also experience
significantly higher levels of inequality (REF). Economy High levels of youth unemployment (and
underemployment), leads to the economy functioning inefficiently (functioning below the
Production Possibility Frontier [PPF]) (REF). Furthermore, a high rate of unemployment means that
young Australians lack the appropriate skills required in the workforce, thus more time and money is
required from the employer to train the young Australians to be able to participate in the workplace
(REF). High levels of youth unemployment result in individuals possessing lower disposable
incomes, consequently there is lower aggregate demand. As demand for labour is derived demand,
the high levels of youth unemployment will result

Inequality In Australia
Distribution of Income Economic journalist Chelsea Gwynne investigates Australia's distribution of
income and its impact on the overall standard of living. Income distribution sits at the top of the
political agenda as Inequality between those with the most and those with the least wealth in
Australia is on the rise. Despite consistent public support for reducing inequality in the distribution
of income, the government is seeking to reduce income support. In fact, in recent months the Liberal
government has begun to argue that inequality is not just unavoidable, but also beneficial. Rather
than use the welfare system to redistribute income, the government is seeking to ensure that welfare
payments grow at a significantly slower rate than wages ... Show more content on Helpwriting.net ...
Thus inequality may have a generally slowing effect on economic growth (Holmes, 2014). A
number of economists have argued that inequality leads to economic instability. One mechanism by
which this happens is that the rich consume a smaller proportion of their income than the poor. They
save money, which people on lower incomes would spend. This leads to a reduction in aggregate
demand, which in turn leads to unemployment (Holmes, 2014). In response, governments take
measures to stimulate demand, such as lowering interest rates. This feeds into asset bubbles–for
example, unsustainably high housing prices (OANDA,

Commentary
The article discusses the environmental issues that Australia faces as a result of numerous
companies emitting greenhouse gases such as carbon dioxide. Thanks to that, a negative externality
occurs because the production of goods and services in Australia has a major effect upon a third
party. For example, a company is set up next to a residential area; this will have a negative effect on
the residents living in that region. For this reason the Australian government is deciding whether to
impose taxes on carbon emissions for the worst polluters
Figure 1 shows that the marginal private costs of the Australian firms are below the marginal social
costs, the pollution created has caused an extra cost to the society, such as respiratory ... Show more
content on Helpwriting.net ...
Cost/AUD
Q2
Q1
Q*
Quantity/Tonne
MSB
MPC
MPC + tax
MSC
0
P1
P2
P*
Welfare Loss In figure 2, the deadweight burden had been reduced, because the tax is not identical
to the external cost, therefore the externality has not been eliminated, but it is less than previously
when there was no government intervention.
Although taxes are seen as a way of making polluters pay, there are some problems with this
solution. First, the Australian government will find it very difficult to measure accurately the
pollution created by firms and give a value to it, in which it can be regained by tax. Second, it is also
very hard to identify which firms are polluting and to what extent are they responsible for the
pollution. Third, it is often argued that tax do not actually stop the pollution from taking place.
Furthermore, putting taxes on those firms will lead to inflation because they have higher costs to pay
for, and to compensate for that, they will increase consumer prices.
The shortage in domestic investment could lead to the closure of many firms or movement abroad
and that will doubtless cause unemployment in Australia. Furthermore, while Australia imposes this

tax to help alleviate a global concern, it doesn't necessarily mean its competitors will and the extra
production costs for Australian firms will give it an unfair disadvantage. The

Social And Economic Welfare Of A Country Essay
Developed in 1930s, GDP defined as the value of all the goods and services produced within a
country in a given financial year (Heloisa, 2012). GDP is significant as it measures size and
performance of an economy. GDP uses growth rate to quantity the economic activity and this assists
policy makers to adjust and implement economic policy during recession and depression, as it
obliges as a precise indicator of the business climate where it provides all the essential data to
government and business so they can adjust and think of ways to survive (Macroeconomics, 2011).
Economically it functions as a modest representation for social and economic welfare of a country
and this helps economist worldwide to study and compare different countries in terms of life
expectancy, wealth, income, education level and many other indicators (Macroeconomics, 2011).
However, on the other side GDP has been relentlessly critiqued by many economists as it doesn't
take into account non–market activities such as unpaid voluntary work or illegal trade. Second,
criticism of GDP is that it doesn't not take into consideration the distribution of nation wealth's, as it
only feeds an estimated of each person share of the market economy it ignores the fact that some
people level of income is higher than others hence, due to unequal distribution the level of poverty
in some countries is difficult to assess. Furthermore, it doesn't even account for loss of welfare due
to natural disasters and also

Public Finance
public finance is the study of the financial activities of governments and public authorities. divided
into three categories: a – Knowing what activities the public sector engages in and how these are
organized (that is, revenue gathering and expenditures) b – Understanding and foreseeing the full
consequences of these governmental activities c – Evaluating alternative policies.
The positive side describes the activities of the public sector, explains the reasons of the programs in
existence and also analyses the consequences of government policies
The normative side, on the other hand, is concerned with designing new policies that meet certain
objectives.
*two approaches are complementary, because, in order to make judgements about what ... Show
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example education externalities keep the market from reaching allocative efficiency because the
gains or losses generated are external to the pricing system; they are unpriceable. The transaction
costs of externalities misallocation of resources or a failure of the market economy to generate a
Pareto optimum. positive externalities 3 types of interventions the government may engage in:
(i) Subsidies: Subsidies are monetary payments government budget to lower their prices Long–term,
low–interest loans and tax reductions are examples of subsidies.
(ii) Government production at lower priceswe have a direct governmental influence on allocation
because the government itself undertakes the responsibility of the production of the positive external
good. supplies it at a lower price, in some cases free of charge iii)compulsion:it regulate the
consumption of certain goods and services.example in most country basic education is compulsory
and parents have to send their children to school. negative externalities arise from harmful
production and consumption, 3 instruments the government may use. These are:
(i)Tax penalties or legal punishments to limit the production or consumption of a good. e.g.
outlawing pollution
(ii) The government may impose excise taxes on goods so as to discourage their consumption or
production. known as sumptuary taxes, e.g. taxes on the consumption of alcoholic drinks

Social Costs Of Smoking Cigarettes
Introduction
The overall economic costs of smoking cigarettes has become somewhat of an epidemic in society
for a variety of reasons. It includes numerous private and social costs. The private cost to smokers
goes far beyond the price of cigarettes alone. Smokers also pay with their health, life, and finances.
Alongside the great cost to smokers, they enjoy benefits to the same degree. The total cost of
smoking not only effects smokers, but society as well. The externalities from smoking are both
negative and positive. Society bears the burden of the negative externalities, or social costs, both
physically and monetarily. The positive externalities, or social benefits, play a significant economic
role in society. The tobacco ... Show more content on Helpwriting.net ...
The average smoker's overall quality of life is jeopardized because of the health ramifications. Many
long–time smokers have lower endurance than non–smokers which results in frequent shortness of
breath. They are also more prone to common illnesses due to their lowered immune system. Finally,
they are at a high risk for disease and premature death. Although these costs are high, smokers do
reap some benefit by making the choice to smoke.
If the private cost of smoking to smokers is so high then why smoke? "According to economic
theory, if smokers are fully informed, rational and under no duress, it can be assumed that the
benefits of smoking to them are at least equal to the costs which they themselves bear."(Collins;
Lapsley) Otherwise, they would not smoke. The benefits to the smoker are both physical and
psychological.
Cigarettes are highly addictive. Reinforcement and withdrawal are the two key factors that establish
cigarette smoking as an addictive behavior. As a learned response to consumption, reinforcement
leads smokers into becoming dependent on the rewards or benefits they reap from smoking. The
nicotine in cigarettes creates a physical dependence while the act of lighting up and smoking creates
a psychological dependence. A smoker benefits from the positive reinforcement that comes from
both the physical and psychological effects of smoking. Smokers are also influenced by

Amarorya Sen's Capability Approach And Human Development
Inhalt
1. Capability Approach and Amartya Sen 1
1.1. Amartya Sen 1
1.2. Capability Approach 1
1.3. Functioning and Capability 2
1.3.1. Functioning 2
1.3.2. Capability 2
1.4. Capability Approach and Human Development 3
1.5. Human Development – a shift in development theory and policy 3
Capability Approach and Human Development Amartya Sen
Amartya Sen is an Indian scholar and Nobel Prize laureate in economics. He grew up and witnessed
the great famine in India, when 2–3 million people died. His life experiences as a child and teenager
inspired his academic career. He developed the so–called capability approach, to offer an alternative
to traditional conservative and liberal approaches in welfare economics. His work highly influenced
the ... Show more content on Helpwriting.net ...
Sen mentions in several of his essays different fields, which include a more diverse selection of
factors than the poverty evaluation. He states:
I have tried to explore the possibility of using the capability perspective for analysing other social
issues, such as well–being and poverty (Sen, 1982a, 1983c, 1985b), liberty and freedom (Sen,
1983a, 1988a, 1992), living standards and development (Sen, 1983b, 1984, 1987b, 1988b), gender
bias and sexual divisions (Kynch and Sen, 1983; Sen, 1985c, 1990b), and justice and social ethics
(Sen, 1982b, 1985a, 1990a). (Sen 1993)
One of the most significant impacts, the capability approach had, was on the creation of the human
development index and the Millenium Development Goals of United Nations.
Amartya Sen defined some basic capabilities, which can be found in the Human Development Index
again. These basic capabilities give freedom to basic things and are significant for the measurement
of a poverty or deprivation threshold. (Robeyns 2000) But he decided not to provide a finite list of
basic capabilities, as a determination of those requires an individual assessment of the respective
evaluation. (Robeyns 2000) p.

Essay Free Markets: Why Governments Intervene
Free Markets: Why Governments Intervene Free markets have often been idealized in the US, and
have become a dominant tool for trade and distribution of goods and services. There have been
multiple waves of government regulation and deregulation of the market in US history. Each of
these trends have been grappling with the central question of how sufficient markets are at satisfying
our goals. In theory, free markets are fair and efficient at distributing goods and services. In reality,
however, government must intervene in the marketplace for two overarching reasons. First, because
in practice free markets left to themselves are not always fair and efficient. And second, because
fairness and efficiency are not our only goals and ... Show more content on Helpwriting.net ...
The result is an unfair distribution of impacts that does not maximize social surplus. Weimer and
Vining call externalities a "missing market" (p. 92). It is feasible to imagine externalities being
accounted for by a private market, in cases where, for example, an externality is manifested into a
change in land value. However, these cases are exceptional. Governmental must typically step in to
value externalities, such as charging fines for polluting industry, in order to account for social costs
and benefits. Natural monopolies are cases in which production costs, infrastructure, and demand
structure lead to a single monopolizing firm producing the good at lower cost than any other
arrangement. Under such situations, firms will tend to over–charge and under–supply, causing a
reduction in social surplus and an inefficient distribution of goods. A lack of competition is a
fundamental violation of the idealized market assumptions. Little or no competition leads to
inefficiencies of production and operation (Weimer and Vining p. 102). Furthermore, natural
monopolies give an unfair and non–competitive advantage to firms that have entered the industry
first. In cases of natural monopolies, government must typically regulate private industry in an
attempt to maximize surplus, or, alternatively, government may provide the good or service publicly.
Stone concisely describes the inefficiency

Developing Efficient Framework For Social Security Data...
Developing Efficient framework for social Security Data Mining Methodology Ms.Pranjali Barde
Ms.Minal Bobade UG Scholar, JCOET UG Scholar, JCOET Yavatmal, India Yavatmal, India
prajubarde@gmail.com minal02bobade@gmail.com Ms.Rani K. Kakde Ms.Vaishali V Rathod UG
Scholar, JCOET UG Scholar, JCOET Yavatmal, India Yavatmal, India ranikakade87@gmail.com
vaishalirathod155@gmail.com
Abstract– The importance of security for social sites is incredibly important currently days. Typical
welfare countries, like Australia have accumulated an outsized quantity of social insurance and
social welfare knowledge. social insurance data processing is predicated on connected references
from past history on large info of social sites. This includes SSDM framework and problems social
insurance challenges goals in mining the social insurance or welfare knowledge. in this antecedently
work done on techniques for social insurance data processing.
During this paper the term use generate little psychosis for increasing the performance. The
performance of trained little psychosis is rechecked will improve performance by combining the
little psychosis..
Keywords– Keywords are your own designated keywords which can be used for easy location of the
manuscript using any search engines.

Perplexing Economic Welfare
In providing economic security, the United States is failing compared to the democracies of
European countries. The United States "has the most inefficient welfare system in the Western
world" (Patterson, 2013). In the United States, it is hard for people to qualify for assistance in a
public assistance program, as the eligibility criteria can be perplexing. Many programs are
complicated and have no sliding eligibility scale. For instance, a person who makes $495 in monthly
income could be eligible to receive a specific benefit, where another person making $500 in income
a month could be ineligible (Patterson, 2013). There are many instances where people who are
considered "poor" to society try to qualify for a particular program but make too

Economic Evaluation Essay
The change in health profiles of the population and the evolution of medical technology have made
more explicit the gap between what medicine can do and what is economically feasible (Fuchs,
2000). Resources to satisfy needs are scarce and every society must decide how better to allocate the
scarce resource among the different alternative uses. Economics tries to address the normative
question of which allocation of resources is best for the society. The answer to such question
depends crucially on the objective being pursued. When comparing different alternatives, under the
classical assumptions of competitive markets (the Arrow–Debreu economy) and Pareto efficiency, a
reallocation is said to be efficient if no one in the economy is made ... Show more content on
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This is the so–called Hicks–Kaldor criterion, which allows making judgements about policies
without making inter–personal comparisons. However, there are two problems with this criterion:
marginal utility of income must be the same across individuals and it may be the case that a
movement back to the original allocation increase welfare, so it would be impossible to define
which allocation is better. Also, the information that would be needed to collect makes the
application of this criterion quite infeasible.
This is the theoretical basis for many cost benefit studies in health care that rely on methods like
contingent valuation to measure benefits from health care interventions. If this is the theoretical
basis for cost benefit analysis, it means the acceptance of Pareto optimality concept and its related
distributional implications. Individual utility is what is being maximised and individuals are
assumed to be the best judges of their own welfare.
Given the limitations of the welfarist approach, some have argued to rely on explicit welfare
functions to aggregate individuals' preferences and explicitly address the issues of distribution, but
as Arrow demonstrated, it is impossible to aggregate individual preferences in a coherent way.
Working on the Sen's ideas, it was showed that interpersonal comparisons were the

Competition Policy On Two Sided
1 Competition policy on two–sided markets: literature review
On a TSM, an intermediary platform provides services allowing two sides of users to interact with
each other. For example, an online market serves sellers on one side and buyers on the other side.
An integral part of every TSM is externality between two sides: buyers benefit from a greater
number of sellers and products proposed on the platform, sellers benefit from a greater number of
potential buyers who use the platform. The utility obtained by each side depends on the number of
users on the other side and vice versa.
According to Rochet and Tirole (2006),
"a market is two–sided if the net utility on one side increases (decreases) with the number of
members on the other side, ... Show more content on Helpwriting.net ...
The theory of two–sided markets was partially based on and is related to the theory of
intermediation and of multi–product firms. A TSM model is close to the model of a multi–
production: two products are represented by two services – to side 1 and to side 2 – with
interconnected demands. The profit function of a two–sided platform could describe behavior of a
multi–product monopoly, given that both models are characterized by nonzero cross elasticities. But
the mechanisms of demand interdependence are different. In case of two linked products, demand
on one good depends directly on the price of the other complement or substitute good, and this price
interdependence is internalized by one consumer who wants to use both goods. On multisided
markets, demand on one good doesn't depend directly on the price of another good, but on the level
of its consumption.
Positive externalities between two sides imply negative cross–elasticities. The well–known result is
that multi–product monopolist's price in the case of negative price elasticities
(product complementarity) is lower. By analogous reasoning, under two–sided positive externalities
prices on both sides are lower, and the number of consumers on both sides is higher than without
externalities. Price of each side positively depends on the externalities it creates on the one side and

The Causes of Market Failure
Why do markets fail to generate socially desirable outcomes? Markets are not infallible. They can
fail to organise economic activity in a socially desirable fashion. Markets failure are due to social
inefficiency and inequity. In the real world, the market rarely leads to social efficiency: the marginal
social benefits of most goods and services do not equal the marginal social cost. Part of the problem
is the existence of 'externalities', part is a lack of competition, and part is the fact that markets may
take a long time to adjust to any disequilibrium, given the often considerable short–run immobility
of factors of production. Let's analyse the types of market failure.
Externalities
The market will not lead to social efficiency if ... Show more content on Helpwriting.net ...
In more extreme cases it could make various activities illegal which make also caused market
failure.
Changes in Property Rights
Limited nature of property rights. Property rights define who owns property, to what uses it can be
put, the rights other people have over it and how it may be transferred. By extending these rights,
individuals may be able to prevent other people imposing costs on them, or charge them for doing
so. For example, the rich can afford 'better' justice for top lawyers. Thus even you have a right to sue
a large company for dumping toxic waste near you, you may not have the legal muscle to win.
Taxes from the Government
When there are imperfections in the market, social efficiency will not be achieved. Marginal social
benefit (MSB) will not equal social cost (MSC). A different level of output would be more desirable.
It forces firms to take on board the full social costs and benefits of their actions. For example, the
bigger the external costs of a firm's actions, the bigger the tax can be.
Behaviour of Monopolies and Oligopolies
Monopolies may lead to 'inefficient allocation' of resources because they may encourage suppliers to
charge an abnormally high price and produce too little, thereby diminishing overall social welfare.
They also have important distributional effects, leading to a redistribution of gains from exchange
away from the consumers to the monopolist. If the monopoly continues to persist in the

Ecological Economics Vs. Welfare Economics Essay
Ecological Economics vs Neoclassicial Welfare Economics
In the past, economic school of thought regarded the resources as unlimited and focused on more
production under the light of the unlimited growth assumption. Every economic action was
suggested to only consider about making more profit. While the economy and the human population
are growing; more natural resources are used and more pollution is observed. Human become to
deal with the results of its production such as enviromental problems and resource scarcity. A debate
has emerged in economics and the mainstream economics is brought into question since its
unlimited growth assumption is collapsed. Ecological economists argues the neoclassical welfare
economics for ignoring the enviromental and ethic values by only focusing on the cost–benefit
analysis. It also claims that the neoclassical economics fails to calculate the value of the
enviromental capital and the loss of the economic activities on the environment. This paper is going
to explain the problems with the neoclassical welfare economics and the alternatives offered by the
ecological economics in terms of economic growth and environment.
The neoclassical welfare economics explains the economic production and behaviour by using the
mainstream terms of economic literature. Specifically, it focuses on the Pareto efficieny and
suggests two theorems related to it. Firstly, the Pareto efficieny is stated by maximisation of
preferences under a restricted budget and

Advantages And Disadvantages Of An Economic System
An economic system is comprised of the various processes of organizing and motivating labour,
producing, distributing, and circulating of the fruits of human labour, including products and
services, consumer goods, machines, tools, and other technology used as inputs to future production,
and the infrastructure within and through which production, distribution, and circulation occurs.
Free or Market Economy
Economic system whereby buyers and sellers can make the deals they wish to make without any
interference, except by the forces of demand and supply.
All resources are owned by private individuals and private organizations
Advantages –The producers of favoured products receive a large income than producers of less
favoured products ... Show more content on Helpwriting.net ...
transfer of council homes to housing associations contracting out Rubbish collections to private co.
Advantages of PFI
Finances public projects without the need for the government to borrow funds or raises taxes.
Risk is transferred to the private provider
Introduces private sector qualities such as efficiency
Disadvantages
Method of financing is more expensive
There is a question on how much risk is transferred in the private sector.
Given the government record of bailing out those companies working for the govt.
Efficiency savings have been made at the expense of quality deterioration in the service. e.g.
hospital cleaning.
Externalities
An externality occurs when the costs or benefits of an economic action are not borne or received by
the instigator.
Externalities are therefore the spill over effects of production and consumption which affect society
as a whole rather than just the individual producer and consumer.
Railway may be good but the noise
Pricing policies based on social cost
Social Marginal benefit

Use indirect taxes and subsidies where private costs of production are below social costs and an
indirect tax could be imposed so that price is raised to reflect the true social cost of

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