ABSTRACT
Let us begin by considering a purely hypothetical economy in which the problems of choice take their simplest possible form. We shall assume that all decisions relevant to the production and distribution of goods are taken by a supreme Authority, which is in possession of all the information upon which the decisions have to be based and which has the power to secure obedience to all its commands. The Authority has at its disposal productive resources, in fixed supplies, which can be combined, in various alternative ways, to make goods. The Authority is benevolent in that it seeks to promote the material welfare of the community; at the same time, however, it is assumed to know, better than the citizens themselves, what kinds and quantities of goods they ought to be given.
