Bulan Regency has 80 villages. Matahari Village is one of the remote and backward villages in Bulan Regency. In 2000 the economic, health and education conditions of the people in the village were very poor. This can be seen from the low welfare index in the village compared to other villages. Difficult access to the village is one of the reasons. Besides Matahari Village, there are 4 other villages in the same condition. In 2015, the Moon Regency Government plans to build a 100 km long road connecting Matahari Village to Bulan Regency. The construction of this road is expected to improve the welfare of the entire community. The source of road financing comes from local taxes. In 2018, the economic conditions improved, which was marked by an increase in the welfare index in the 4 villages 2 levels from its original position.

Microeconomics: Private and Public Choice (MindTap Course List)
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Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
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Chapter15: Income Inequality And Poverty
Section: Chapter Questions
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Bulan Regency has 80 villages. Matahari Village is one of the remote and backward villages in Bulan
Regency. In 2000 the economic, health and education conditions of the people in the village were
very poor. This can be seen from the low welfare index in the village compared to other villages.
Difficult access to the village is one of the reasons. Besides Matahari Village, there are 4 other
villages in the same condition. In 2015, the Moon Regency Government plans to build a 100 km long
road connecting Matahari Village to Bulan Regency. The construction of this road is expected to
improve the welfare of the entire community. The source of road financing comes from local taxes.
In 2018, the economic conditions improved, which was marked by an increase in the welfare index in
the 4 villages 2 levels from its original position.
www
Question:
a. Explain completely and describe the form of social function (Social Welfare Function) of the
district government of Bulan. why is that.
b. Explain in full, whether the Pareto condition is reflected in the socio-economic conditions of
Kabupaten Bulan?
uwww m
c. Explain in full whether the welfare theorem can be used to explain the socio-economic conditions
of Bulan Regency?
wwwm
Transcribed Image Text:Bulan Regency has 80 villages. Matahari Village is one of the remote and backward villages in Bulan Regency. In 2000 the economic, health and education conditions of the people in the village were very poor. This can be seen from the low welfare index in the village compared to other villages. Difficult access to the village is one of the reasons. Besides Matahari Village, there are 4 other villages in the same condition. In 2015, the Moon Regency Government plans to build a 100 km long road connecting Matahari Village to Bulan Regency. The construction of this road is expected to improve the welfare of the entire community. The source of road financing comes from local taxes. In 2018, the economic conditions improved, which was marked by an increase in the welfare index in the 4 villages 2 levels from its original position. www Question: a. Explain completely and describe the form of social function (Social Welfare Function) of the district government of Bulan. why is that. b. Explain in full, whether the Pareto condition is reflected in the socio-economic conditions of Kabupaten Bulan? uwww m c. Explain in full whether the welfare theorem can be used to explain the socio-economic conditions of Bulan Regency? wwwm
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