Question

o eeved 600 of uhlity from the hrst ticket, how would this change the optimal utilitarian distribution? 3. (5 pts each) In the table below, consider four societies with four people of differing incomes: Person Society A Society B Society C Society D 2,050 850 650 450 2,100 Person 2 1,0011,000 1,100 Person 3 Person 4 800 600 800 600 998 a) If you had an equal probability of being one of the persons (i.e., 25% chance). which society would you prefer to live in? Why? b) According to Rawl's Maximin principle, which society is worse off? Why? c) Suppose the poverty threshold is $1,000 and below, what are the poverty rates in each society?

Answer 1

3. a) I prefer to live in Society A because the income levels for all of the people had almost equal.

If we observed the other societies had some high fluctuations in incomes.

So, I feel to prefer to live in society A due to income levels are all nearer or equal to $1,000.

b) After observing all societies, the Society D is worse off compared to the rest of societies.

If we observed the Societies A, B and C had some fluctuations in incomes but it has not fewer incomes for the people like Society D.

So, the society D is the worse off due to low income.

c) If the poverty threshold is $1,000 then the poverty rates in each society like as in the below table.