Draw a PPF for butter and guns production. a.  Explain verbally and graphically the concept of “free lunch.” b. Explain verbally and graphically what movement between two production points on the PPF represents. Does this qualify as “a free lunch?” Why or why not?

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Welfare Analysis

Welfare analysis of the society is related to welfare economics. From the economic point of view former welfare economics refers to that subject which uses the techniques of microeconomics to analyse and evaluate the welfare at the economic or aggregate level.