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Unformatted text preview: happiness for the greatest number Assume that rich people value $1 less than poor people Mike has $70,000 MB of $1 = 5 Sara has $25,000 MB of $1 = 8 Mike gives $1 to Sara Fairness 2. Maximin Principle Make the poorest person as well off as possible Tax the rich and redistribute to the poor Administrative costs of taxation...
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This note was uploaded on 09/21/2011 for the course ECON 251 taught by Professor Blanchard during the Spring '08 term at Purdue University-West Lafayette.
- Spring '08