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medium of redemption (E4)<br />Cash, or another type of money, into which banknotes are convertible.
bliss point (D6)<br />An optimal combination of PRIVATE and PUBLIC GOODS. This combination is derived from a SOCIAL WELFARE FUNCTION. In the figure w, w2 and w3 are different social welfare functions, BB is a grand utility maximization frontier, P is the bliss point, Ux and UY are ordinal preference functions and W = W(Ux, Uy) is a social welfare function. At the bliss point P, social welfare is at a maximum because BB touches the highest welfare function contour.
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