In the context of the Social Welfare Function (SWF), which of the following statements best describes the implications of Arrow's Impossibility Theorem on constructing a fair and efficient social welfare function?
1
A social welfare function can be constructed that satisfies all of Arrow’s fairness criteria under any set of individual preferences.
2
Arrow’s Impossibility Theorem proves that no social welfare function can satisfy all fairness criteria simultaneously if there are at least three options.
3
A social welfare function will always prioritize individual preferences equally without causing conflict.
4
Arrow’s theorem supports the construction of a perfect welfare function that maximizes utility for all individuals equally.