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Consider an Impartial Spectator deciding on the allocation of two goods (apples & oranges) among two people (Aisha & Betty). Suppose that the social welfare
Consider an "Impartial Spectator" deciding on the allocation of two goods (apples & oranges) among two people (Aisha & Betty). Suppose that the social welfare function adopted by the Impartial Spectator is as follows: W[us , UB] = (UA ) (UB ) b and we know that a > b then, which of the following statements is true? Select one: O a. The resulting allocation selected by the social planner will be Pareto inefficient. O b. This situation is equivalent to the one in which Betty has take-it-or-leave-it power O c. The social planner weights Aisha's utility more heavily than Betty's. O d. Aisha necessarily gets more goods in the resulting allocation selected by the Social Planner. O e. The social planner weights Betty's utility more heavily than Aisha's
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