Fix a set and define by recursion on
The recursion theorem defines a function-class uniquely by : for each there is exactly one finite sequence satisfying the displayed recursion through stage . Thus is genuinely functional, and the Axiom schema of replacement applied to the set gives the set .
Now define
It contains every member of . If , then for some ; hence every belongs to
Thus is transitive. If is any transitive set containing every member of , induction gives for every , so . Therefore
is the transitive closure of .
The Axiom of foundation says that every nonempty set contains an with . The principle of epsilon induction says that if a formula is progressive,
then holds for every set.
Assume foundation and let be progressive. If failed for some , use separation to form the nonempty set of failures inside . Foundation supplies an -minimal failure . Every member of lies in the transitive closure and is not a failure, so progressiveness gives , a contradiction. Hence epsilon induction holds.
Conversely, assume epsilon induction and suppose a nonempty set has no -minimal member. Let
If every member of satisfies but , then , making an -minimal member of , contrary to the assumption. Thus is progressive. Epsilon induction says every set lies outside , contradicting that is nonempty. Foundation follows.
True. If is countable, then each of its members is a subset of this transitive set and is therefore countable.
Conversely, if is reasonable, then itself and every set occurring at every finite membership depth below it are countable. Starting with the countable set , each next level is a countable union of countable sets, hence countable. Their countable union is , so the transitive closure is countable.
True. By part (i), the reasonable sets are exactly the hereditarily countable sets . The rank of a countable transitive closure is the supremum of countably many countable ordinals, plus at most a finite amount, and is therefore below . Hence every reasonable set belongs to
False. The reasonable sets form the transitive set , but this structure fails the Axiom of power set. The set is reasonable, and every subset of is itself countable and therefore reasonable. Its full power set is uncountable, so it is not reasonable. No member of can therefore contain internally every subset of that belongs to . Thus the reasonable sets do not form a model of ZFC.

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