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Policy A makes the income of every top 50% income earners increase by $100, but causes a drop of $50 to every bottom 50% income
Policy A makes the income of every top 50% income earners increase by $100, but causes a drop of $50 to every bottom 50% income earner. Policy B causes a $100 drop in income to every top 50% income earner, while the income of every bottom 50% income earner increases by $50. Which of the two policies can be transformed in a Pareto improvement? Why? Be brief. Which of the two policies would you support? Why? Be candid (and brief)
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