Find the value of w, An economy consists of two

Find the value of w

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Reference no: EM131490475

Question: An economy consists of two individuals, Lynne and Jonathan, whose utility levels are given by UL and Us, respectively.

a. Suppose that the social welfare function is

W = UL + UJ

True or false: Society is indifferent between giving a dollar to Lynne and a dollar to Jonathan.

b. Now suppose that, instead, the social welfare function is

W = UL+ 8UJ

True or false: Society values Jonathan's hap-piness more than Lynnes.

c. Now suppose that, instead, the social wel-fare function is

W = mill [UL, UJ]

True or false: In this society, the optimal distribution of income is complete equality.

Reference no: EM131490475

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