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Question
What is welfare?
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Solution
Welfare refers to the well-being of a person or society. It comprises two categories: economic welfare, which can be measured in terms of money and non-economic welfare, which includes factors like environment, law and order, social relations and freedom, not measurable in monetary terms.
Welfare is generally derived from the consumption of goods and services that satisfy human needs. While an increase in wealth usually leads to increased welfare, they are not always proportional since harmful goods can reduce welfare.
Welfare depends on how wealth is produced and distributed, as equitable distribution maximizes social welfare.
Thus, welfare is the overall well-being influenced by economic and non-economic factors, not just wealth alone.
