For each of the following policy changes, explain why the change is or is not likely to be a Pareto improvement:
a. Building a park, financed by an increase in the local property tax rate.
b. Building a park, financed by the donation of a rich philanthropist; the city acquires the land by exercising the right of eminent domain.10
c. Increasing medical facilities for lung cancer, financed out of general revenues
d. Increasing medical care facilities for lung cancer, financed out of an increase in the cigarette tax.
e. Replacing the system of agricultural price supports with a system of income supplements for poor farmers.
f. Protecting the automobile industry from cheap foreign imports by imposing quotas on the importation of foreign cars.
g. Increasing Social Security benefits, financed by an increase in the payroll tax.
h. Replacing the primary reliance at the local level on the property tax with state revenues obtained from an income tax.
i. Eliminating rent control laws. In each case, state who the losers (if any) are likely to be. Which of these changes might be approved under the compensation principle? Which might be approved under a Rawlsian social welfare function?