Arrange the following scholarly contributions in their chronological order starting from the oldest to latest:
(A) Kaldor-Hicks Compensation Criterion
(B) Bergson Social Welfare Function Criterion
(C) Rawls' Principle of Social Justice
(D) Pareto Optimality Criterion
Choose the correct answer from the options given below:
Step 1: Theoretical Overview.
These elements belong to welfare economics. Their historical sequence is crucial for comprehending the field's development.
Step 2: Chronological Arrangement of Contributions:
- (A) The Kaldor-Hicks Compensation Criterion was introduced in 1939.
- (B) Bergson's Social Welfare Function emerged in the 1950s.
- (C) Rawls' Principle of Social Justice was proposed in 1971.
- (D) The Pareto Optimality Criterion was presented earlier, during the 19th century.
Step 3: Correct Sequence.
The accurate order is: - Initially, Kaldor-Hicks Compensation Criterion (A). - Subsequently, Bergson Social Welfare Function (B). - Following that, Rawls' Principle of Social Justice (C). - Lastly, Pareto Optimality Criterion (D).
Step 4: Final Determination.
The correct sequence is (A), (B), (C), (D), thus the correct selection is (1).
Match List-I with List-II.
| List-I | List-II |
|---|---|
| A. Contract Curve | I. Shows all efficient allocation of goods |
| B. Utility Possibility Frontier | II. Shows all efficient allocations of resources measured in term of utility |
| C. Social Welfare Function | III. Measure the well being of society as whole in term of utilities of individual |
| D. Production Possibility Frontier | IV. Shows the combination of two goods that can be produced with given input |