Economics A-Level
Welfare loss
What Welfare loss means in Economics A-Level, as defined for AQA.
Definition of Welfare loss
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: AQA
A net loss arising when state intervention to correct a market failure makes the misallocation of resources worse than if the free market had been left alone.
Topics that use Welfare loss
- Government failure (AQA A-Level)
Related terms
- Administrative costs
- Conflicting objectives
- Cost-benefit analysis
- Economic welfare
- Government failure
- Inadequate information
- Market versus government
- Price mechanism
Using Welfare loss in the exam
Check the command word and mark scheme for your exact question. After comparing your explanation with the reference, use the term in an answer on the linked topic. This practice does not predict an exam mark.
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