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). Which of the following is the best definition of economics? A) the study of how individuals and societies choose to use the scarce resources that nature and previous generations have provided B) the study of how consumers spend their income C) the study of how business firms decide what inputs to hire and what outputs to produce D) the study of how the federal government allocates tax dollars

2. Aaron and his friends Britney, Carlos, Diana, Emily, Frank, Gwen, Hugo, Isabela, and Juliana have two choices for weekend activities. They can either go to the neighborhood park or get together in Aaron's hot tub. The park isn't much fun, which means that the benefits from being there are low on the friends' common utility scale. In fact, each of the friends receives a benefit equal to 6 "utils" from being at the park. This benefit doesn't depend on how many of the friends go to the park. Aaron's hot tub, on the other hand, can be fun, but the benefits of using it depend on how many of the friends are present. When the tub isn't too crowded, it's quite enjoyable. When lots of people show up, however, the tub is decidedly less pleasant. The relationship between benefit per person (measured in utils) and the number of people in the hot tub (denoted by T) is where AB denotes "average benefit." a) Using the above formula, compute AB for T = 1,2,3,...,10. Next compute total benefit from…

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