Question: (a) Explain the differences between utilitarian and Rawlsian social welfare functions. Support your explanation with a graphical representation for each of them. (b) True or

(a) Explain the differences between utilitarian and Rawlsian social welfare functions. Support your explanation with a graphical representation for each of them.

(b) True or false? "Utilitarianism implies that a dollar given to one person is as important as a dollar given to anyone else". Justify your answer.

(c) Suppose the utility possibilities frontier for two consumers (Anne and Ben) is represented by the equation U²_B = 150 5U²_A , where U_Aand U_B stand for the utilities of Anne and Ben respectively. (a) What is the optimal level of UA and UB according to the Rawlsian criterion? (b) What is the optimal level of U_A and U_B according to the utilitarian criterion? (c) Provide a graphical representation in the (U_A ,U_B)-space.

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