Market Efficiency: Consumer and Producer Surplus in International Trade - Part 2

Learn about market efficiency and welfare economics in this 28-minute economics lecture that delves into how competitive markets achieve efficient outcomes by maximizing total surplus. Examine the fundamental differences between market-based and centrally planned economies, focusing on why government-controlled resource allocation often falls short of optimal efficiency. Explore the challenges faced by centrally planned economies in gathering crucial information about consumer willingness to pay and producer costs. Gain insights into why free markets generally serve as superior mechanisms for organizing economic activity and maximizing social welfare. Part of NPTEL's 'Principles of Economics' course, this lecture offers certification options that can be applied for course credits in Indian Universities under UGC and AICTE guidelines.