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Supposing that the Social Welfare function is Rawlsian and that the least well-off individuals in society...

Supposing that the Social Welfare function is Rawlsian and that the least well-off individuals in society are single mothers. Suppose that single mothers only value leisure. If you focus on the labor market, by reducing TANF benefits, which of the following must occur?

a.Social efficiency and social welfare will increase

b. social efficiency will increase while social welfare will decrease\

c.Social efficiency may or may not change while social welfare will decrease

d.Social efficiency will decrease and social welfare may or may not change

e.none of the above

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Answer #1

Answer to the question is option e. none of the above

This is because , reducing TANF benefits wont lead to any of the results mentioned in the first four options.

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