3)Applying the basic principles of welfare economics to judge government policies 4)Be familiar with the manifestation and causes of market failure b.Content Section 1 Welfare Economics 1)Main Content a)pure economy exchange b)production economy 2)Basic concepts and key points a)Basic concepts:Edgeworth Box;indifference curve;Pareto improvement;the contract curve: b)Key points:indifference curves in an Edgeworth box;conditions for Pareto efficiency;efficiency conditions with variable production. 3)Questions and application How should people assess the social desirability of various government activities？ Section 2 The First Fundamental Theorem of Welfare Economics 1)Main content a)The connotation of the first fundamental theorem of welfare economics; b)The proof of the first fundamental theorem of welfare economics. 2)Basic concepts and key points a)Basic concepts:the first fundamental theorem of welfare economics; b)Key points:the connotation and proof of the first fundamental theorem of welfare economics 3)Questions and application Will a given economy achieve Pareto efficiency? Section 3 Fairness and The Second Fundamental Theorem of Welfare Economics 1)Main Content a)The connotation and proof of the second basic theorem of welfare economics; b)The proof of the first fundamental theorem of welfare economics. 2)Basic concepts and key points 3) Applying the basic principles of welfare economics to judge government policies 4) Be familiar with the manifestation and causes of market failure b. Content Section 1 Welfare Economics 1) Main Content a) pure economy exchange b) production economy 2) Basic concepts and key points a) Basic concepts: Edgeworth Box; indifference curve; Pareto improvement; the contract curve; b) Key points: indifference curves in an Edgeworth box; conditions for Pareto efficiency; efficiency conditions with variable production. 3) Questions and application How should people assess the social desirability of various government activities? Section 2 The First Fundamental Theorem of Welfare Economics 1) Main content a) The connotation of the first fundamental theorem of welfare economics; b) The proof of the first fundamental theorem of welfare economics. 2) Basic concepts and key points a) Basic concepts: the first fundamental theorem of welfare economics; b) Key points: the connotation and proof of the first fundamental theorem of welfare economics. 3) Questions and application Will a given economy achieve Pareto efficiency? Section 3 Fairness and The Second Fundamental Theorem of Welfare Economics 1) Main Content a) The connotation and proof of the second basic theorem of welfare economics; b) The proof of the first fundamental theorem of welfare economics. 2) Basic concepts and key points