Welfare loss
What Welfare loss means in Economics B A-Level, as defined for Pearson Edexcel.
Definitions of Welfare loss
Exam boards and our study guides word this term in slightly different ways. Learn the version your board uses.
Check what you remember
Read the wording for your board, then hide it and explain Welfare loss in your own words. Rough notes are fine. This is a self-check, with no mark or grade.
Reference: Pearson Edexcel
The deadweight loss shown on a tariff diagram, which exam tips advise shading clearly alongside government revenue.
A net loss arising when a divergence between private and social costs leads to over-production of harmful goods.
Topics that use Welfare loss
- Market failure and externalities (Pearson Edexcel A-Level)
- Trade policy and trade negotiations (Pearson Edexcel A-Level)
Related terms
- External benefits
- External costs
- Externalities
- International competitiveness
- International Monetary Fund (IMF)
- Market failure
- Private benefits
- Resource misallocation
Using Welfare loss in the exam
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