l E ' -Ef i n T if For all subparts below, assume that all individuals in society have the same utility function, utility is an increasing function of income, marginal utility of income is declining, and that we have a utilitarian social welfare function. (These are the standard assumptions we made in class.) (a) If a policy passes the Pareto test, will it always improve social welfare? Explain. (b) If a policy passes the KaldorHicks test, will it always improve social welfare? Explain. (c) Consider a country with only two residents, Jack and Jill. Both have the same utility function: U = IT, where U is utility and Y is income. The country is considering two policies that would result in the following incomes for its two residents. POLICY 2 (i) Which policy would be preferred under the KaldorHicks criterion? (ii) Which policy would maximize social welfare? Explain