1. Consider a society with three people (A, B, and C) and four feasible allocations (r1; 12; 13; x4) The utilities for each of the three people from each allocation are displayed in the following table: 21 I2 33 IA UA 0 8 8 8 UB 2 8 9 2 8 Uc 12 1 1 0 (a) (3 points) Which allocation(s) would be chosen by a Utilitarian planner? (b) (3 points) Which allocation(s) would be chosen by a Rawlsian planner?
1. Consider a society with three people (A, B, and C) and four feasible allocations (r1; 12; 13; x4) The utilities for each of the three people from each allocation are displayed in the following table: 21 I2 33 IA UA 0 8 8 8 UB 2 8 9 2 8 Uc 12 1 1 0 (a) (3 points) Which allocation(s) would be chosen by a Utilitarian planner? (b) (3 points) Which allocation(s) would be chosen by a Rawlsian planner?
Chapter2: Productions Possibilities, Opportunity Costs, And Economic Growth
Section: Chapter Questions
Problem 18SQ
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Transcribed Image Text:1. Consider a society with three people (A, B, and C) and four feasible allocations (r1; 12; 13; x4)
The utilities for each of the three people from each allocation are displayed in the following
table:
21
I2
33
IA
UA
0
8
8
8
UB
2
8
9
2
8
Uc
12
1
1
0
(a) (3 points) Which allocation(s) would be chosen by a Utilitarian planner?
(b) (3 points) Which allocation(s) would be chosen by a Rawlsian planner?
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