An essay on the topic: "What is welfare economics and why it is important?"

                                                                                          Mareeva Olesya g-210 

     An essay on the topic: "What is welfare economics and why it is important?" 

     Welfare economics, it's the economy that shows how economic policies affect society, families and individuals. Welfare economics says that, besides numbers, graphs and formulas exist and people. Welfare economics shows how income and wealth are distributed among the population, as well as how public policies affect the capital. Thus, welfare economics examines some kind of justice. Namely economists are interested in, how true are the economic systems.

     Economic transactions, often affect other people, who are not directly involved in these operations. Economists call these the results of external effects. These effects may be both the good and the bad. There are many such examples. For example, the automobile industry is a negative effect, as pollutes the environment. But at the same time, the industry has a positive effect, as people become more mobile.

      The next thing I wanted to touch on in his essay, it's a subject of taxation. Namely, I would like to answer the question: how taxation creates equality in the economy? For a start I should say that the equality in the economy - this is when the demand is equal to supply. The government may regulate the demand and supply through taxation. For example, if the government is interested, for one product, the market was small, it increases the tax on this product. Then people will not want to acquire them. And vice versa, in order for a greater number of people buying the product, the government should reduce taxes on it.

     In the end, I can now answer why the economics of the welfare important. Because it is studying economic justice. That is, we can learn how the government influences the state capital and how it affects the income and wealth of all people. We can understand what we can expect the effect of one or another economic operation. And I think that's very important.