Determine which of the following statements are true and which are false. (a) There always exist...

Determine which of the following statements are true and which are false.

(a) There always exist a Pareto efficient alternative. (b) There always exist a Pareto dominated alternative.

(c) The best alternative according to Rawlsian Justice is always Pareto efficient. (d) The best alternative according to Borda rule is always Pareto efficient.

Expert Solution

a) False

Pareto efficient or Pareto optimal condition occurs when resources are optimally allocated and therefore redistribution is not possible here so alternative allocation is not Pareto efficient.

b) True .

Pareto dominated are two types they are weakly dominated where everyone has better off and strongly dominated where some people has better off but no one has worse off.

c) True

Rawls justice is known as justice of fairness which means everyone has equal advantage and equal distribution. And therefore everyone is better off without making anybody worse off.

d) False.

Not always the best alternative is Pareto efficient in borda rule

Rahul Sunny answered 2 years ago

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