Deadweight loss measures welfare loss due to market inefficiencies like monopolies or taxes. It quantifies the lost surplus when market equilibrium is not Pareto efficient.
Economic Welfare is a measure of the overall economic well-being, often linked to the standard of living but can incorporate aspects like economic stability and equitable distribution of wealth.
Immiserizing Growth is an economic phenomenon where an increase in national or regional production leads to a decrease in overall welfare. This complex and counterintuitive situation often arises due to adverse changes in terms of trade.
A rule describing efficient commodity taxation in a single consumer economy when there are no cross-price effects in demand, establishing that goods with low elasticities of demand should be taxed highly.
Ramsey Pricing is a pricing policy designed to maximize economic welfare while ensuring that firms meet specific profit targets. It involves pricing strategies that can vary depending on the returns to scale and elasticity of demand.
Trade creation refers to the effect of a customs union in creating or increasing trade between member countries due to the reduction of tariffs. It contrasts with trade diversion and is generally considered welfare-increasing.
