Question

Describe briefly economic welfare and non-economic welfare.

Answer 1

Economic welfare refers to the part of human welfare that can be measured in terms of money. It involves the well-being that comes from economic activities such as production, consumption and distribution of goods and services that satisfy human wants and contribute to the wealth and development of society. Economic welfare can be quantified by indicators like income, wealth and national income.

Non-economic welfare, on the other hand, includes aspects of human well-being that cannot be measured in monetary terms. This includes factors like environment quality, law and order, social relationships, freedom and other non-material satisfactions. Non-economic welfare arises from non-economic activities that are performed out of love, affection, sympathy or patriotism and do not aim for financial gain.

In brief:

• Economic welfare is linked to monetary benefits and wealth creation that satisfy human needs.
• Non-economic welfare relates to social, emotional and moral satisfactions that do not involve money and are beyond market transactions.