LIWANAG ERICA JOANNA B.

BSBA-2
BAC 1(MWF 12:00 PM - 01:00 PM)
FINAL ASGMT 2
TITLE: WELFARE ECONOMICS

ANSWER:
1. In the Picture show above, it shows a man with a Light Bulb in his head which
could represent an Idea or a Satisfying Product is shaking the hand of another
man with Money in his head which in my understanding could be a consumer
buying a product for his satisfaction.
 This implies an Entrepreneur with a product or idea and selling it to the
proponent or consumer to satisfy his needs. In short, it could also be implied as a
Man Selling Satisfaction to the Consumer in exchange for Money.

2. Yes. This is by analyzing Welfare economics which begins with the application of
utility theory in microeconomics. Utility refers to the perceived value associated
with a particular good or service. In mainstream microeconomic theory,
individuals seek to maximize their utility through their actions and consumption
choices, and the interactions of buyers and sellers through the laws of supply
and demand in competitive markets yield consumer and producer surplus.