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To model the relationship between free time and production for a rice farmer named Diya who is being coerced by a landowner named Avery. Avery does not farm and can force Diya to work for them. To survive, Diya must do what Avery says.

If Diya was able to work 24 hours a day, they could produce 5 tonnes of rice each day. You are told that the allocation that maximises Avery's economic rent occurs when Diya works for 10 hours a day, producing a total of 4 tonnes of rice each day. At this allocation, Diya gets 2 tonnes of rice each day to survive.

Question

Using a model of decision-making under scarcity, with free time on the horizontal axis and rice production on the vertical axis, show the allocation under coercion described above. On this diagram be sure to label the feasible frontier and biological survival constraint, along with the intercepts of each curve.

Question

Using the diagram you created for above Question, show the technically feasible set that results from Avery's coercion of Diya. What can we say about the slope of the feasible frontier and the biological survival constraint when Avery's economic rent is being maximised?

Question

Evaluate the allocation under coercion based on a substantive judgement of fairness. Be sure to briefly define this type of judgement in your answer.

Question

Evaluate the allocation under coercion based on a procedural judgement of fairness. Be sure to briefly define this type of judgement in your answer.

Question 15

Research has shownthat land reforms that give farmers ownership of the land on which they farm can have long-standing positive impacts on livelihoods, food security, and the self-sufficiency of households.

Suppose that Diya now owns the land on which they farm and that Avery no longer has a claim on the land. You are told that Diya's utility-maximising choice is to work for 9 hours and produce 3.5 tonnes of rice.

Using a model of decision-making under scarcity, with free time on the horizontal axis and rice production on the vertical axis, show Diya's optimal choice of free time and production. On this diagram be sure to label the feasible frontier and indifference curve, along with the optimal choice.