Maximization of Social Welfare Conventional

The problem is the basic economic welfare to find a function of social welfare maximum theoretically, subject to various constraints, such as the status of technology in production, natural resources that are available, national infrastructure, and obstacles such as behavior Maximization value to consumers and producers benefit Maximization. In the economic possibilities of the most simple this can be done to solve the simultaneous equation seven. Economic equality in this simple example has only two consumer (consumer 1 and consumer 2), only two products (product X and product Y), and only two factors of production, namely labor (L) and capital (K)). The model can be stated as follows:
Maximize social welfare: W = F (U1 U2) subject to the constraints: K = Kx + Ky (Total capital used for the production of goods
X and Y)
L = LX Ly + (Total labor used in the production of goods X and Y)
X = X (Kx LX) (production function for product X)
Y = Y (Ky Ly) (production function for product Y)
U1 = U1 (X1 Y1) (Preferences (option) from the consumer 1)
U2 = U2 (X2 Y2) (Preferences from the consumer 2)


These solutions use the Pareto Optimum. Examples are the realistic use millions of consumers, millions of products and some of the factors of production, but the similarities matematiknya very complex. Also, find a solution to an abstract function that does not directly produce a policy recommendation. In other words, equality is not a breakthrough in solving social problems. Nevertheless, a model such as that mentioned above can be seen as an argument that solve a social problem (such as the achievement of pareto optimal distribution of wealth) is the most can not be possible in theory.
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Income distribution Sharia

Some reasons for thinking that a basic income distribution among various factors of production. First, the payment of rent, generally pengacu on the understanding that the surplus is a unit of a factor of production exceed the minimum amount required to maintain a factor in that position now, it seems this is not contrary to the spirit of Islam. Explained that the rent and interest is very different.


Second, the difference in wages due to differences in talent and genius is recognized by Islam. Terms of Matt, is the employer will not suck up the workers and he must pay for the rights of the workers while they will not exploit their employer through the union, and they must also carry out their duties sincerely and honestly.
Third, there is a controversy between usury and interest. But when the meaning of usury is seen in the perspective of history right, it seems there is no difference between usury and interest. A brief survey of all modern theories about the interest of experts said that the economy is not successfully find a clear answer why the interest should be paid. In another theory about the Islamic capital acknowledge that the capital in national wealth but
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the extent to which the contribution will be determined as a percentage change of profit than a specified percentage of the capital itself. The author is quite sure when leaders p, a sincere effort, it is possible to have a free perekonimian interest. Can not be denied again that because bungalah grow capitalism with all the crimes involved in the community. Interest cause problems of unemployment, slow process kepulihan depression causes debt repayment problems for underdeveloped countries, also destroying the main principles of cooperation, mutual help, and make people selfish.
Fourth, Islam allows ordinary profit - not the monopoly profit, or profit arising from speculation. Finally, we explain some of the generally accepted principles of the legal heir of Islam, the adult is a permanent system, scientific and more beautiful harmony. Most positive contribution from the legal heir of Islam is that it recognizes the role of women in the process of economic activities complex.

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