QUESTION 1 (a) Explain the differences between utilitarian and Rawlsian social welfare functions Support your explanation with a graphical representation for each of them (2 points) (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 (2 points) (c) Suppose the utility possibilities frontier for two consumers (Anne and Ben) is represented by the equation U B2 150 5U A2 , where UA and UB stand for the utilities of Anne and Ben respectively (a) What is the optimal level of UA and UB according to the Rawlsian criterion (2 points) (b) What is the optimal level of UA and UB according to the utilitarian criterion (2points) (c) Provide a graphical representation in the (UA ,UB) space (2 points) QUESTIGN 1 a Explain the differences between utilitarian and Rawlsian social Welfare functions Support your explanation with a graphical representation for each of them 2 points) Is Tom or false Utilitarianism implies that a dollar given to one person is as important as a dollar given to anyone else Justify your answer 2 points c Suppose the utility possibilities frontier for two consumers Anne and Ben is represented by the equation U i lidSUE where Us and Us stand for the utilities of Anne and Ben respectively a What is the optimal level of Us and Us according to the Rawlsian criterion 2 points (b) What is the optimal level of Us and Us according to the utilitarian criterion 2points c Provide a graphical repmsentation in the Us ,Ug spo 2 points

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jun 26, 2024

QUESTION 1 (a) Explain the differences between utilitarian and Rawlsian social welfare functions. Support your explanation with a graphical representation for each of them. (2

QUESTION 1

(a) Explain the differences between utilitarian and Rawlsian social welfare functions. Support

your explanation with a graphical representation for each of them. (2 points)

(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. (2 points)

by the equation U B2 = 150 - 5U A2 , where UA and UB stand for the utilities of Anne and Ben

respectively.

(a) What is the optimal level of UA and UB according to the Rawlsian criterion? (2 points)

(b) What is the optimal level of UA and UB according to the utilitarian criterion? (2points)

QUESTIGN 1 {a} Explain the differences between utilitarian and Rawlsian social Welfare functions. Support your explanation with a graphical representation for each of them. {2 points) {Is} Tom or false? \"Utilitarianism implies that a dollar given to one person is as important as a dollar given to anyone else\". Justify your answer. {2 points} {c} Suppose the utility possibilities frontier for two consumers {Anne and Ben} is represented by the equation U i = lidSUE. where Us and Us stand for the utilities of Anne and Ben respectively. [a] What is the optimal level of Us and Us according to the Rawlsian criterion? {2 points} (b) What is the optimal level of Us and Us according to the utilitarian criterion? [2points} [c] Provide a graphical repmsentation in the {Us ,Ug}spo&. {2 points]