GENERAL KNOWLEDGE

Detailed explanation-1: -Pigou’s most influential work was The Economics of Welfare (1920). In it, Pigou developed Marshall’s concept of externalties, which are the costs imposed or benefits conferred on others that are not accounted for by the person who creates these costs or benefits.

Detailed explanation-2: -According to Pigou, welfare resides in a man’s state of mind or consciousness which is made up of his satisfactions or utilities. The basis of welfare, therefore, is necessarily the extent to which an individual’s desires are met. Social welfare is regarded as the summation of all individual welfares in a society.

Detailed explanation-3: -Pigou, a British economist, is best known for his work in welfare economics. In his book The Economics of Welfare Pigou developed alfred marshall’s concept of externalities, costs imposed or benefits conferred on others that are not taken into account by the person taking the action.

Detailed explanation-4: -Definition of Welfare – Alfred Marshall (1890) Alfred Marshall. “Economics is the study of man in the ordinary business of life” This definition was put forward by Alfred Marshall.