Considering the given possible uses of candy, which of the four choices could be Pareto Efficient (assuming candy is a “good”)? 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 1: Every student gets one candy. The remaining candies are thrown in the bin. CHOICE 2: One student gets all the candies CHOICE 3: Every student gets two candies except for one student, who gets no candy; the remaining go in the bin. CHOICE 4: All the candies go in the bin
Considering the given possible uses of candy, which of the four choices could be Pareto Efficient (assuming candy is a “good”)? 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 1: Every student gets one candy. The remaining candies are thrown in the bin. CHOICE 2: One student gets all the candies CHOICE 3: Every student gets two candies except for one student, who gets no candy; the remaining go in the bin. CHOICE 4: All the candies go in the bin
Microeconomics: Principles & Policy
14th Edition
ISBN:9781337794992
Author:William J. Baumol, Alan S. Blinder, John L. Solow
Publisher:William J. Baumol, Alan S. Blinder, John L. Solow
Chapter5: Consumer Choice: Individual And Market Demand
Section: Chapter Questions
Problem 3DQ
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- Considering the given possible uses of candy, which of the four choices could be Pareto Efficient (assuming candy is a “good”)?
- 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 1: Every student gets one candy. The remaining candies are thrown in the bin.
CHOICE 2: One student gets all the candies
CHOICE 3: Every student gets two candies except for one student, who gets no candy; the remaining go in the bin.
CHOICE 4: All the candies go in the bin
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