Macroeconomics 1st Edition by Dean Karlan,Jonathan Morduch

Exercise 5

In a small town in the midwestern United States lives a drug dealer and manufacturer who supplies the illegal, addictive drug crystal meth. The drug dealer insists that making and selling the drug is what gives him the most satisfaction among any possible use of his time and resources. Using the utility-maximization approach, should he be allowed to continue supplying the drug? What about with the capabilities approach? Explain your answer.