Social security is defined as the security that the society furnishes through appropriate organizations against certain risks to which its members are exposed. According to Lexicon Universal Encyclopaedia, the term social security has been defined as 'consisting of public programmes intended to protect workers and their families from income losses associated with the old age, illness, unemployment, or death. The [...]
Edgeworth diagram is divided into two types. The horizontal side of the box measures a fixed total output of good 1 and the vertical side measures a fixed total output of good 2. Individual 1's consumption of good 1 is measured horizontally from the origin at o1. His/ her consumption of good 2 is vertical from o1. In the diagram, [...]
The second theorem of welfare economics has certain advantages over first theorem of welfare economics. It explains that if all consumers have convex preferences and all firms have convex production possibility sets then Pareto efficient allocation can be achieved. The equilibrium of a complete set of competitive markets are suitable for redistribution of initial endowments. In the second welfare theorem, [...]