How a utilitarian would prefer to redistribute wealth

Reference no: EM132199048

Question: a. Draw a Utilities Possibilities Frontier (UPF) for Group A (x axis) and Group B (y axis).

b. Explain why the shape of the UPF is either convex (slope decreases as x increases), linear (constant slope), or concave (slope increases as x increases), in terms of marginal utility. Hint: There is one correct answer here.

c. Suppose we start out with an allocation â€œdown and to the rightâ€ on your diagram, where Group A has most of the wealth and hence most of the utility. Call this allocation M on the diagram. Demonstrate, using the proper social indifference curve, how a utilitarian would prefer to redistribute wealth from Group A to Group B to maximize total utility.

Reference no: EM132199048

Questions Cloud

A function magnitude that computes the magnitude of a vector : Write a function magnitude that computes the magnitude of a vector, i.e., the square- root of the sum of the squares of the components of the vector.

Supply and demand curve for the coffee market : 1. How does Elasticity of demand relate to coffee prices and the current coffee market?

Write a function to decrypt a message : Write a function to decrypt a message that was encrypted using the Affine cipher .

What is a corporate merger : What is a corporate merger? What is an acquisition? What is the goal of antitrust policies?

How a utilitarian would prefer to redistribute wealth : Suppose we start out with an allocation â€œdown and to the rightâ€ on your diagram, where Group A has most of the wealth and hence most of the utility.

Which of the given best explains why this is likely : Arvind Subramanian, chief economic advisor to India's government, has warned policymakers that India invests far less on infrastructure and education in poorer.

What is the official unemployment rate in littleville : What is the official unemployment rate in Littleville?

Illustrate various interesting memory congurations : Write a main function to call it, and illustrate various interesting memory congurations during its execution.

Employment-population ratio in littleville : Employed people were working on the day of the survey. The employment-population ratio in Littleville is?

User Account

All Pages