ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Net welfare gain – definition A net welfare gain refers to the impact of a government policy, or a decision by firms, on total economic welfare, taking into account the gains, less any losses.

Detailed explanation-2: -The aggregate welfare effect for the country is found by summing the gains and losses to consumers, producers, and the government. The net effect consists of two components: a negative production efficiency loss (B) and a negative consumption efficiency loss (D).

Detailed explanation-3: -The difference between what consumers are willing to pay for a unit of the good and the amount consumers actually do pay for the product.

Detailed explanation-4: -Relation Between Wealth And Welfare Welfare is the well-being or satisfaction enjoyed by the society which is actually determined to a great extent by the wealth of the nation. Wealth generally hikes up our level of welfare although both of them are two completely different concepts.