1. Consider a society with three people (A, B, and C) and four feasible allocations (x1; 2; 3; x4) The utilities for each of the three people from each allocation are displayed in the following table: 21 22 23 24 UA 0 8 8 8 UB Uc 12 82 8 6 2 8 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 (x1; 2; 3; x4) The utilities for each of the three people from each allocation are displayed in the following table: 21 22 23 24 UA 0 8 8 8 UB Uc 12 82 8 6 2 8 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?

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter2: Thinking Like An Economist

Section: Chapter Questions

Problem 5QR

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