Suppose you were a benign government who wanted to improve Angela’s situation, but without sacrificing the aim of Pareto Efficiency. One policy advisor tells you that all you need to do to achieve this is to improve Angela’s reservation option. Is this correct?

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A: Answer is in 2nd step:

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A:

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A:

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A: Respective answers to the questions are provided below in accordance with the given extract.

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Q: Let: U1 = x1 + z^.5, Y1 = x1 + pz1 U2 = x2 - .5z^.5, Y2 = x2 + pz2 z = z1 + z2, Y is the income of…

A: Given that; U1 = x1 + z10.5    Y1 = x1 + pz1  U2 = x2 - 0.5z20.5 Y2 = x2 + pz2

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A: The tax credit or liability (TAX) can be calculated by using the following formula.

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A: Answer -

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A: The following is a summarized response; however, for a more thorough explanation, refer to the next…

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A: Consider the benefits as well as the problems associated with a reproductive policy such as China’s.…

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A: We are going to analyse lorenz curve and gini coefficient to answer this question.

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A: The following problem has been solved as follows: