ECONOMIC WELFARE SYARIAH

Conventional understanding of Economic Welfare

Economic Prosperity is a branch of economics that uses micro-economic techniques to determine the efficiency of the allocation from the same time macro-economic and income distribution consequences associated with it (O'Connel, 1982). Economic prosperity is the framework used by most economists to evaluate the public to the desired income communities (Rosen, 2005:99). Economic prosperity provides the basis for assessing the performance of the markets and policymakers in the allocation of resources (Besley, 2002). This definition is of value to the allocation of (utility) that can be achieved in a society subject to the constraints of technology and cuisine.
Economic prosperity try to maximize the level of social welfare with the economic activities of individuals in the community. Economic welfare have regard to the welfare of individuals, as the opponent groups, communities, or the economic welfare of people assume that the individual is the basic unit of measurement. Economic prosperity also assume that the individual is the best judge for the welfare of their own, the people will enjoy greater prosperity than smaller welfare, and welfare can be measured both in terms of monetary or as a relative preferences.
Social welfare refers to the overall status of the order for the community. Social welfare is often defined as the addition of the welfare of all individuals in the community. Welfare can be measured either in the cardinal dollars (rupiah) or "utils", or measured by Ordinal in the terminology to the relative value. Method cardinal is rarely used today because of the problems that make the aggregate accuracy of the method is questionable. There are two sides of economic prosperity, namely economic efficiency and income distribution. Economic efficiency is more extensive and positive dealing with "the size of the cake." Income distribution is far more normative and dealing with the "division of the cake."


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