Imagine an economy where the government allocates resources among its citizens.
ID: 1127213 • Letter: I
Question
Imagine an economy where the government allocates resources among its citizens. Recently, the government divided $1,000 among ten citizens. The amount each citizen receives is displayed in the table below.
Citizen
Amount Received ($)
1
100
2
150
3
50
4
10
5
90
6
200
7
10
8
190
9
20
10
180
a) The government claims that this is an efficient allocation. Do you agree?
b) Social workers in the economy criticized the government on the basis of this allocation. What could be the grounds for such criticism?
Thank you in advance!
Citizen
Amount Received ($)
1
100
2
150
3
50
4
10
5
90
6
200
7
10
8
190
9
20
10
180
Explanation / Answer
a) The government would claim that the allocation was based on some criteria like income and societal status
b) Though the government would claim some basis for allocation but an equal allocation of $100 among 10 citizens would have been justified. The government would need to publish the basis of allocation else it would lead to lot of unanswered issues, criticisms and comments on the unequal allocation of $1000.