Question

In welfare economics, why do policymakers analyze different theories?

• A. To maximize corporate profits
• B. To understand market failures and improve societal well-being
• C. To control the economy through regulation
• D. To reduce employment rates

Answer 1

Answer:

B. To understand market failures and improve societal well-being

Policymakers examine welfare economic theories to identify and correct market failures, helping to make informed decisions that promote the well-being of society.