•Choice between: •a. Every student gets one sweet. The remaining sweets are thrown in the bin. •b. One student gets all the sweets. •c. *C. Every student gets two sweets except for one student, who gets no sweets; the remaining sweets go in the bin. •d. All the sweets go in the bin.

•Choice between: •a. Every student gets one sweet. The remaining sweets are thrown in the bin. •b. One student gets all the sweets. •c. *C. Every student gets two sweets except for one student, who gets no sweets; the remaining sweets go in the bin. •d. All the sweets go in the bin.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Among the four choices, which policy would yield the highest value according to a “Rawlsian” welfare function? (assuming that sweet/candy is a “good”) Explain.

•Choice between:
Every student gets one sweet. The
remaining sweets are thrown in the bin.
•a.
•b.
One student gets all the sweets.
Every student gets two sweets
except for one student, who gets no sweets;
the remaining sweets go in the bin.
All the sweets go in the bin.
•c.
•d.

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