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 [...]
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, [...]
The first theorem of welfare economics is based on the two assumptions: 1. In the economy, all commodities are competitive. The equilibrium in the economy is Pareto efficient. 2. There is market for all commodities. Each commodity is produced in the economy and consumption of commodity ads to utility function. In an economy, all markets are competitive. Consumers and producers [...]