In economics,welfare analysis is useful to
A) gauge the validity of "mend it, don't end it."
B) determine who should receive income transfers.
C) determine who gains and who loses in a particular policy option.
D) prove which policy option is "best."

Question

Quizplus · Accepted Answer

Welfare analysis helps determine who benefits and who is harmed by a particular policy, making it useful for analyzing policy options. It does not necessarily provide a clear answer on which option is "best" as this can depend on subjective preferences and values. It is also not typically used to determine who should receive income transfers as this is more a question of social welfare or equity. "Mend it, don't end it" is a slogan rather than a policy option, so welfare analysis would not be useful for gauging its validity.

In Economics,welfare Analysis Is Useful to