The Arrow Impossibility Theorem Explains

question 164

Multiple Choice

The Arrow impossibility theorem explains

• A)why there is no system of voting that will consistently represent the underlying preferences of voters.
• B)why government regulation of private markets will always result in a reduction in economic efficiency in these markets.
• C)why voters are always rationally ignorant.
• D)why it is not possible to provide the economically efficient amount of any public good.

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Definitions:

Need For Workers

The demand for labor or employees by businesses and industries to perform tasks and produce goods and services.

Productivity Of Labor

A measure of economic performance that calculates the output of goods and services produced per unit of labor input.

Human Capital

The combined abilities, expertise, or other non-physical resources that individuals possess, which can generate economic benefits for the individuals themselves, their employers, or the society.

Rate Of Investment

The percentage of return achieved on an investment over a given period of time.