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.