Dalton’s Principle of Maximum Social Advantage
- Maximum satisfaction should be yield by striking a balance between public revenue and expenditure by thegovernment. Economic welfare is achieved when Benefits from Marginal Utility of Expenditure = Marginal disutility due to imposition of taxation. He explains thisprinciple with reference to
Maximum Social Benefit (MSB)
Maximum Social Sacrifice (MSS )
In the given figure “P” is the point of Maximum Social Advantage. At this point
At a point before P, i.e. “P
. And at point after P, i.e.
Pigou’s Principle of Maximum Aggregate Benefit. Graph showing point of Maximum Aggregate Benefit at point "E"
’s Principle of Maximum Aggregate Benefit
He explains it with respect to
“Net Social Benefit”
(NSB) which is the difference between MSB and MSS. It is maximum when
In the given figure thepoint
is the point of
Maximum Aggregate Benefit
, as the NSB is maximum at this point.