6

4. Consider a social welfare function that is given by the Atkinson index, I'm; 7/(1-v) where y = 2. Consider two income distributions: in economy 1, the top 10% earns $100k and the remaining 90% earns $10k, and in economy 2, half of the population earns $20k while the other half earns $50k. According to this social welfare function, which of these economies is considered more successful