Question

2. (5 pts each) One heroic assumption that utilitarians make is that they can actually

compare (and measure) happiness and misery across different people. Luckily, parents

have this uncanny ability when those people are their kids. In fact, just this past

weekend, my friend Kenny and I were trying to figure out how to distribute six cookies

among our four boys. Quite a predicament, indeed. Kenny and I are utilitarians, so

we made the following table. From this information, answer the following questions.

Utility per cookie	Jack	Wyatt	Grant	River
1st	85	100	20	10
2nd	40	45	5	3.142
3rd	9	8	3	2
4th	2	1	1.618	1

a) Notice each kid gets the most utility from the first cookie and each extra cookie

yields a little less utility. What economic concept does this reflect?

b) How did Kenny and I distribute the six cookies?

c) If instead, Jack received 150 units of utility from his first cookie, 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
Person 1	1,002	2,200	2,100	2,050
Person 2	1,001	1,000	1,100	850
Person 3	999	800	800	650
Person 4	998	600	600	450

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

wert ho lock by at the afilities they receives after haubing Cookies, ce se that thels marginal Whility is getting lower and lowes. This is the bu dininishing trougireel uit body. The additional benefit whicha pason. derne from a guen increase of his stuck of a thing diminishes with Eury increase in the Stock that he already has (b) will, to distribute Cookies, we have to see the Cardinal celling One sicues from each Cochies while having Jack Can recens upto I cookies, because of higher utility becene, so should wyatt. His utility is always higher than Grant & River. Finally Grant & river can have each one Cookse. Sack Wyatt Grant River a 2 1 1 (6) if fack secened 150 untity, the first Cookie at first to him , just that apart from that distribution will remain the same Jock whalt Grant River 3. (a) world prefer to live is Society A, the reason is the last person in the socicly Earns more than 3rd Last I from scriety A, B&C. So it is more equitable distribtion (6) According to Raulstan maximen principle, the fully welfare should be defined in terms of welfare of the heast well of agent in Gridy urolina Un) = minunar. URL Society Dis wore off, because the last person is that Society Eaun Sigrificantly less than other A, B, &C. So is worse off

1 (c) posuerty sates A = axle 50%. B- Qx100=50% C= B) OD = 501. De Blo = 751