A cake is to be shared by two people. Both desire the largest piece possible. One of the two will cut the cake. Under which of the following situations will the cutter adopt a Rawlsian social welfare function?
A) The person cutting the cake chooses the first piece.
B) The person not cutting the cake chooses the first piece.
C) The two individuals will bid for the right to cut the cake and choose first.
D) The two individuals will toss a coin for the right to cut the cake and choose first.
Question 2
Economies of scale in nuclear power plants exist because of
A) more efficient plant management.
B) a better understanding of the plant's idiosyncrasies, or learning-by-doing.
C) nuclear power technology changes.
D) both A and B.
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