The part of economics concerned with the effects of economic activity on welfare. This includes the modelling of individual or household behaviour by utility functions; criteria for efficiency, including Pareto-optimality and theories of the second-best; criteria for judging whether changes in the economy are beneficial; consideration of how income distribution affects social welfare; and cost-benefit analysis of activities involving externality. Welfare economics is largely synonymous with normative economics: it does not include study of the institutions, as distinct from the objectives, of the welfare state.

• accepting house
• accession countries
• access, market
• accommodatory monetary policy
• account
• accounting
• accounting period
• accounts
• accounts, consolidated
• accounts payable
• accounts receivable
• accumulation, capital
• acid rain
• acquisition
• acquisition company
• ACT
• action
• actuarially fair odds
• actuary
• adaptive expectations
• adequacy, capital
• adjustable peg
• adjustment
• adjustment costs
• adjustment, price and quantity