Social welfare functions are mathematical tools used in economics to evaluate the overall welfare of a society based on individual utilities. They provide a framework for making normative judgments about the distribution of resources and can guide policy decisions aimed at achieving social equity and efficiency.

Social Welfare Functions

Social welfare functions

mathematical tools

overall welfare

individual utilities

normative judgments

distribution of resources

Policy decisions are strategic choices made by governing bodies or organizations to address issues, allocate resources, and achieve specific goals. These decisions are influenced by various factors including economic conditions, political pressures, social needs, and ethical considerations, and they have far-reaching implications on both micro and macro levels.

policy decisions

Social equity refers to the fair and just distribution of resources, opportunities, and privileges within a society, aiming to address systemic inequalities and ensure all individuals have access to the same opportunities. It emphasizes the need to consider different starting points and barriers faced by diverse groups to create a more inclusive and equitable society.

social equity

Efficiency is the ability to achieve a desired outcome with the least amount of wasted resources, such as time, energy, or materials. It is a critical factor in both economic systems and engineering processes, driving innovation and competitiveness by maximizing output while minimizing input.

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