True/false, no need to explain. (a) There is no perfect way to aggregate individual preferences to a single "social" preferences (b) “Before enacting a policy, try to put ourself in the shoes of those who will be negatively impacted mostly.” This sentence is best to summarise the Benthamite welfare function (c) If a person's utility is simply a function of her own consumption, and the welfare function is derived from individuals utility function, then we will not have consumption externalities.
True/false, no need to explain. (a) There is no perfect way to aggregate individual preferences to a single "social" preferences (b) “Before enacting a policy, try to put ourself in the shoes of those who will be negatively impacted mostly.” This sentence is best to summarise the Benthamite welfare function (c) If a person's utility is simply a function of her own consumption, and the welfare function is derived from individuals utility function, then we will not have consumption externalities.
Chapter21: Demand: Consumer Choic
Section: Chapter Questions
Problem 16E
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True/false, no need to explain.
(a) There is no perfect way to aggregate individual preferences to a single "social" preferences
(b) “Before enacting a policy, try to put ourself in the shoes of those who will be negatively impacted mostly.” This sentence is best to summarise the Benthamite welfare function
(c) If a person's utility is simply a function of her own consumption, and the welfare function is derived from individuals utility function, then we will not have consumption externalities.
(d) An allocation cannot be both equitable and Pareto efficient.
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