a) (2) Give a formula for a social welfare function in terms of the bundles of...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
a) (2) Give a formula for a social welfare function in terms of the bundles of goods received by each member of the population. Let X', denote the quantity of good j received (and presumably consumed) by individual i. b) (3) An individualistic social welfare function is a form of social welfare function that has a particular property. Give the formula for an individualistic social welfare function, and explain its particular property that distinguishes it from the broader class of social welfare functions. Consider the following situation. Individuals A and B have the same tastes except that A derives one unit of utility from attending a classical music concert but no utility from attending a hard metal concert, while B derives no utility from attending the classical music concert and one unit of utility from attending the hard metal concert. The "planner" (the agent whose tastes are reflected in the social welfare function), meanwhile, believes that attending a classical music concert elevates the human spirit while attending a hard metal concert does not. Would this planner evaluate social welfare to be the same if both A and B attend only the classical music concert as if both A and B attend only the hard metal concert? 1, ---, c) (2) Jeremy Bentham, a classical utilitarian, argued that social welfare should be measured by adding up the utilities of individuals in the population: W=EU(X₁,- X'), where W is social welfare, U'() is the utility function of individual i, and X', is defined in part a). This formula could also describe a particular form of a Bergson- Samuelson social welfare function. The two are not, however, the same. Indicate the difference. d) (2) "Equality before the Law" likely means different things to someone who subscribes to consequentialism than to someone who subscribes to procedural equity. Explain. e) (2) What would a strict Rawlsian philosopher say about the change in social welfare brought about by a S transfer from Bill Gates to the second worst-off person in the population? f) (4) In terms of his evaluation of legal outcomes: Is the author a strict adherent of consequentialism, a strict adherent of procedural equity, or somewhere in between? On what evidence do you base your statement? To the extent that the author is a welfarist, does he believe that individuals' utility functions are cardinal or ordinal? On what evidence do you base your statement? a) (2) Give a formula for a social welfare function in terms of the bundles of goods received by each member of the population. Let X', denote the quantity of good j received (and presumably consumed) by individual i. b) (3) An individualistic social welfare function is a form of social welfare function that has a particular property. Give the formula for an individualistic social welfare function, and explain its particular property that distinguishes it from the broader class of social welfare functions. Consider the following situation. Individuals A and B have the same tastes except that A derives one unit of utility from attending a classical music concert but no utility from attending a hard metal concert, while B derives no utility from attending the classical music concert and one unit of utility from attending the hard metal concert. The "planner" (the agent whose tastes are reflected in the social welfare function), meanwhile, believes that attending a classical music concert elevates the human spirit while attending a hard metal concert does not. Would this planner evaluate social welfare to be the same if both A and B attend only the classical music concert as if both A and B attend only the hard metal concert? 1, ---, c) (2) Jeremy Bentham, a classical utilitarian, argued that social welfare should be measured by adding up the utilities of individuals in the population: W=EU(X₁,- X'), where W is social welfare, U'() is the utility function of individual i, and X', is defined in part a). This formula could also describe a particular form of a Bergson- Samuelson social welfare function. The two are not, however, the same. Indicate the difference. d) (2) "Equality before the Law" likely means different things to someone who subscribes to consequentialism than to someone who subscribes to procedural equity. Explain. e) (2) What would a strict Rawlsian philosopher say about the change in social welfare brought about by a S transfer from Bill Gates to the second worst-off person in the population? f) (4) In terms of his evaluation of legal outcomes: Is the author a strict adherent of consequentialism, a strict adherent of procedural equity, or somewhere in between? On what evidence do you base your statement? To the extent that the author is a welfarist, does he believe that individuals' utility functions are cardinal or ordinal? On what evidence do you base your statement?
Expert Answer:
Answer rating: 100% (QA)
a W X A social welfare function is a function that aggregates the welfare of all individuals in a society In other words it is a function that measures how welloff the members of a society are There a... View the full answer
Related Book For
Pricing Strategies A Marketing approach
ISBN: 978-1412964746
1st edition
Authors: Robert M. Schindler
Posted Date:
Students also viewed these accounting questions
-
Tonight is a concert night. Three concerts a classical music concert, a country music concert, and a rock music concert -- take place at the same time. You consider going to one of them. Suppose the...
-
Give the formula for price elasticity. Explain why the quantities in this formula are percents rather than specific units, such as dollars, euros, or yen.
-
Give the formula for each molecule 1. disulfur difluoride 2. iodine pentabromide
-
If two krypton atoms are held together by a stabilization energy of 1.005 kJ/mol at what temperature would you expect these atoms to transition from bound to unbound? Show your thought process for...
-
The histograms shown below represent binomial distributions with the same number of trials n but different probabilities of success p. Match each probability with the correct graph. Explain your...
-
If the MPC was 0.90, (a) How much did consumer spending decline initially in response to the 2013 expiration of the payroll tax cut (essentially, a tax hike to consumers)? (News Wire "Fiscal...
-
What is a Mode of Operation?
-
On November 30, the end of the current fiscal year, the following information is available to assist Allerton Companys accountants in making adjusting entries: a. Allertons Supplies account shows a...
-
A lot of new and emerging technologies are evolving and impacting the field of robotics. These technologies help us create more advanced robots. Discuss how advanced robots of the future will be. For...
-
Dyson was the first company to introduce a bagless solution to conventional vacuum cleaners. Dyson's mission is to make well-designed, innovative products that are easy to use and...
-
Williams Company is a manufacturer of auto parts having the following financial statements for 2016. Balance Sheet December 31, 2016 2016 Cash $ 280,000 Accounts receivable 170,000 Inventory 405,000...
-
A strategy has a monthly total return of 0.0025 (0.25%) and a monthly standard deviation of total returns of 0.0040 (0.40% ). The risk free rate is 2% and the market risk premium is 4%, both per...
-
How do hybrid modeling approaches, combining first-principles models with empirical correlations or data-driven models, enhance the fidelity and applicability of process simulation in diverse...
-
You borrow $150,000 today (t=0) at 14% APR with quarterly compounding. You make equal semi-annual payments back to the lender starting 6 months from now (t=1), up to and including 10 years from now....
-
Drake Ltd has issued bonds that are currently priced at $1056.70. They have a $1,000 par value and 9 years to maturity. They pay a semi-annual coupon of 7%. What is the annualised yield to maturity...
-
A small mining group is considering the purchase of a $1,786,713 continuous mining machine that will operate approximately 6,000 hours per year. The operational costs for the unit are estimated to be...
-
For a business to achieve its objectives, there is a need for Financial Analysis and Planning. With the support of practical examples justify this statement.
-
Walker, Inc., is an all-equity firm. The cost of the company's equity is currently 11.4 percent and the risk-free.rate is 3.3 percent. The company is currently considering a project that will cost...
-
Describe the conditions that would make the use of advance-purchase discounts appropriate.
-
If offering a new product would involve $10,000 in incremental fixed costs and variable costs of $3 per unit, what would be the breakeven sales level if the product were priced at $5? How can knowing...
-
The marketing manager of an automobile battery manufacturer is considering the prices that should be set for some new additions to the companys product line. The Basic is the standard model, which...
-
Describe how partial and circular reasoning can be helpful or harmful in resolving ethical dilemmas.
-
Describe the various legal risks for nurses.
-
Describe the various roles of advanced practice nurses.
Study smarter with the SolutionInn App