ECON 3510 Lecture 1: DELETE
12 Feb 2018
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Tradeoff between efficiency (easier to measure and easily to agree if wasted or not) and. People do appear to be willing to trade-off greater amounts of a good (efficiency) against a fairer distribution of the good (equity). In health care, people seem to place considerable weight on equity and are willing to tolerate quite substantial reductions in total health produced to generate a more equal distribution of health. Economics captures such attitudes through the concept of a social welfare function (utility functions is like happiness for all the society, it measure how well society is, depend on your view). Since this is hard to quantify, it is not used often. This mathematically represents society"s preferences and attitudes toward the amount and distribution of welfare in society. Allocating pills for pain relief survey question (theoretical study): 48 pills per day available for pain relief of two individuals identical in all respects except their ability to metabolize pain medication.
