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MITxT 14.

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Microeconomics
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Course / Week 10: Equity / Problem Set 10

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Elections in Utopolis
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Problem Set due Mar 27, 2024 07:30 +08 Completed

Problem PS10.2.1
2/2 points (graded)
There are three equally-sized distinct subpopulations in Utopolis: unemployed, workers, and retirees. There are four
possible social states which result in different utility levels for the three subpopulations:

Unemployed Workers Retirees


Social state A 12 50 10
Social state B 20 20 20
Social state C 15 15 15
Social state D 1 40 1
Which social states might plausibly be chosen by the government of Utopolis?
(Assume the government is neither evil nor stupid. Select each correct answer.)

Social state A

Social state B

Social state C

Social state D

None of the above

There is a government election in Utopolis with two candidates: a Rawlsian and a Utilitarian candidate. Each candidate
promises to enact one of the social states above.

If the candidate that wins the votes of a majority of citizens is elected, and if citizens vote in their self-interest, which
social state will be enacted?

Social state D

Social state B

Social state C

Social state A

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