Efficiency and Justice
This chapter expounds on efficiency and justice. The concepts of absolute and relative efficiency are defined and shown to depend on the underlying definition of justice in alternative economic systems. Then, various definitions of justice, including that from an Islamic standpoint, are deduced and applied. On the basis of this notion, the social welfare function and general equilibrium point is obtained and it is shown that all consumption, production and exchange processes are both efficient and equitable.
KeywordsSocial Welfare Social Justice Social Welfare Function Indifference Curve Total Utility
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