1. A society has three individuals (A, B, C) and four policy proposals (W, X, Y, Z). Their utility information is given below. A B W 4 5 2 4. 10 Y 3 3 3 5 10 Evaluate and explain your answers. a. Suppose there is a Dictatorial social welfare function (arrow's theorem), which of these policies should be chosen? b. Suppose there is a Weighted social welfare function, which of these policies should be chosen? c. Suppose there is a Utilitarian social welfare function, which of these policies should be chosen? d. Suppose there is a Multiplicative social welfare function, which of these policies should be chosen?

1. A society has three individuals (A, B, C) and four policy proposals (W, X, Y, Z). Their utility information is given below. A B W 4 5 2 4. 10 Y 3 3 3 5 10 Evaluate and explain your answers. a. Suppose there is a Dictatorial social welfare function (arrow's theorem), which of these policies should be chosen? b. Suppose there is a Weighted social welfare function, which of these policies should be chosen? c. Suppose there is a Utilitarian social welfare function, which of these policies should be chosen? d. Suppose there is a Multiplicative social welfare function, which of these policies should be chosen?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

5
The paper is 50 of 50 Suppose that you have health insurance that covers all your healthcare expenditures. If you are rational, you will use medical care up to the point where your: The disutility of the illness is equal to the marginal benefit of healthcare. b. I do not want to answer this question. C Marginal benefit is equal to the total costs of providing the medical care. Marginal benefit is zero. e Total benefits are equal to the cost of your health care insurance.
Alex and Jennifer are roommates. Alex values listening to loud music at $800, and Jennifer values peace and quiet at $650. If Jennifer has the property rights to the apartment, who's preferences prevail according to the Coase Theorem? O Jennifer O Alex O Cannot tell from information given.
Which of the following assertions regarding social efficiency and social welfare iscorrect?a. They are the same conceptb. Social welfare includes both economic efficiency and equity whereas socialefficiency does not include equityc. Social efficiency includes both economic efficiency and equity whereas socialwelfare does not include equityd. Social efficiency is a higher standard than social welfare.
2. Residents in a town are voting to decide where a new library will be built. The residents" homes are on the same street and the "map" of the town is represented below. The letters represent the location of each house. The numbers represent distance in 100 meters (in other words, house 'a' is 100 meters from house 'b' and 1200 meters from house i). Each house- hold would receive a utility of 12 if the library was built in front of that house; utility decreases by I unit as the distance to the library increases by 100 meters. Use the distance markers (the numbers) to indicate where the library should go according to the following aggregation methods:
2
7
!
2. General Equilibrium Consider a market with two goods, x and z, and two consumers, A and B. The utility functions for consumers A and B are as follows UA ÜB 2 1 == XBZB and the initial endowments for each consumer are @ eA = (4,2) еB = (2,6) where consumer B is endowed with 2 unit of good x and 6 units of good z, respectively. a) Draw the Edgeworth Box (Don't worry about the shape of the utility curves. Just pick a general shape that we have used before). b) Derive the contract curve.
!
6. In an Edgeworth box for two consumers, A and B, with endowments of commodities Xa and d Ya are A's endowments, Xb and Yb are B's, and Xo = Xa + Xb, Yo = Ya + Yb), the competitive equilibrium allocation of the two commodities represents a mutual tangency of both consumers' indifference curves with each other and with a common budget line. (a) The conditions require that A and B consume at a point on their budget lines where their indifference curves have the same marginal rate of substitution. and equilibrium for the market as a whole requires that the sum of the individuals' demands for each commodity must equal the totals (Xo and Yo) available. Mathematically express the point of equilibrium, that is, express the above statement with equations in relating each endowments, equilibrium points (Xa, Xb, Ya, Yb), and totals ((Xo, Yo).
! i need 'b' part