Consider two outcomes, x and y, with the relevant information described in the following:

Outcome x:

consumption health status utility

individual A 80 Fair 91.31

individual B 400 Excellent 409.38

Outcome y:

consumption health status utility

individual A 130 Good 140.15

individual B 300 Good 310.39

Let z and w are two outcomes given below:

Outcome z:

consumption health status utility

individual A 81.16 good 91.31

individual B 300 good 310.39

Outcome w:

consumption health status utility

individual A 130 good 140.15

individual B 398.99 good 409.38

1.1. Given the above information, what's the recommendation by CBA on outcomes x and y?Explain your reasoning

1.2. How would a utilitarian rank the two outcomes x and y?Explain.

1.3. How would any one who subscribes to a notion of equality of outcomes rank x and y?Explain.

2.Suppose that the amount people are willing to pay to eliminate a risk of death of 1/100,000 is $60.What's the VSL?

3.Is the methodology used by the public choice school any different from that used by economists in modeling and analyzing individual agent?

Comment on: "According to the public choice approach, whenever there is a market failure, the government should always intervene to correct the market failure."

Comment on: "Most of the times, politicians and bureaucrats are for public interests and they do whatever they can to promote the general welfare of the people."

Reflection on: Do we see a market failure or government failure during the COVID-19 crisis?What would be your policy recommendations for the crisis?