True/False and explain. If all the individuals in a society have transitive preferences over the three goals of national healthcare policy (health, equity, and wealth), then society has transitive preferences over the three goals of healthcare policy
Correct Answer:
False
Individuals have three
goals and they can set their transitive preferences as per their
own choices, but a society cannot build its own transitive
preferences. It is explained by the Arrow impossibility theorem.
The theorem says that if there are three goals or choices, then a
society wide effect of transitive preferences cannot be built even
if individuals can possess transitive preferences. The theorem is
given by Ken Arrow.
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