Brett, Art, and Isabel Reside on a Tiny Island in the Pacific

question 75

Multiple Choice

Brett, Art, and Isabel reside on a tiny island in the Pacific. All three of them have a utility function given by U = Y^0.5, where Y is income per day. Suppose that Brett earns $7 per day, Art earns $25 per day, and Isabel earns $36 per day. What happens to the value of the utilitarian social welfare function If the government takes $9 of Art's income and gives it to Brett?

• A) The utilitarian social welfare function will increase from 13.65 to 14.
• B) The utilitarian social welfare function will remain unchanged at 68.
• C) The utilitarian social welfare function will decrease from 15.50 to 12.30.
• D) The utilitarian social welfare function will increase from 8.20 to 12.

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Definitions:

Environmental Factors

Various elements in the surrounding environment that can influence physical, mental, and socio-economic outcomes for individuals and communities.

Heredity Factors

The genetic components passed from parents to offspring, influencing traits and predispositions.

Behaviour

Includes the actions or reactions of an organism, usually in relation to its environment, which can be observable or measurable.

Theoretically Diverse

Encompassing a wide range of theories within a field or topic, allowing for multiple viewpoints.