Welfare economics

Welfare economics is a type of economics that looks at how different activities of people and groups affect their happiness or wellbeing, usually in terms of money. For example, it looks at how people in a city get paid, how much taxes they pay, and whether their money is being used in the most efficient way. It also looks at the difference between people's incomes, how resources are allocated and shared, and how decisions are made about what to produce and consume. Economists use welfare economics to improve how money is used and to make sure that everybody gets an equal chance to enjoy the resources available.