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?

MACROECONOMICS FOR TODAY
10th Edition
ISBN:9781337613057
Author:Tucker
Publisher:Tucker
Chapter2: Productions Possibilities, Opportunity Costs, And Economic Growth
Section: Chapter Questions
Problem 18SQ
Question
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?
Transcribed Image Text: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?
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