Welfare analysis, Microeconomics

Welfare Analysis

1-Of the following four institutions for allocating apartment to different people at different prices

  i.  The competitive market

 ii.  A discriminating monopolist

 iii. An ordinary monopolist

 iv. Rent control

a. Which one of the above four institutions are best and why? (In answering this question you need to define what is socially "good". This is not easy. Your primary guidance is your gut feelings however before you express your feelings to others you need to rationalize them and make them defensible. Pareto optimality is often used by a number of economists to discern various social states. )

b. Can you think of a situation where your answer in (a) is no longer your preferred institution?

c. Are your answers in (a) and (b) objective and value free? Explain. 

2- Consider a society in which a few people have everything and a great many of them have virtually nothing something like slavery, evaluate this society in terms of Pareto efficiency.

Posted Date: 2/23/2013 6:12:08 AM | Location : United States







Related Discussions:- Welfare analysis, Assignment Help, Ask Question on Welfare analysis, Get Answer, Expert's Help, Welfare analysis Discussions

Write discussion on Welfare analysis
Your posts are moderated
Related Questions
Economic Reforms and Reduction of Regional Disparities: Another important objective of development is to reduce regional disparities. Government has been helping the backward

What determines aggregate demand?

(Cost minimization) a)  What are the expressions for the marginal product of every of the two inputs in producing credit hours? b)  What is the expression for the marginal r

Poverty: A state of having inadequate income or other resources to support a household (or group of households) at a basic standard of living. Poverty can be measured in absoluterr

Assume you see that two macroeconomic variables are correlated with each other.  But you want to know if there's an underlying or causal relationship between the two variables.  Wo

What are the various forms of aid a developing country might receive? Here the student must show clearly the difference between grant (donor) aid; reciprocal (tied) aid; bilat


Government Budget Deficits Governments have been traditionally spending more what they could earn by way of taxes and sale of economic goods and services produced by them. The

what are the values of real money supply and the current price level

#question.contrast the long run equilibrium position of monopolistic competition firm and oligopoly.