The Condorcet Paradox Shows That

question 147

Multiple Choice

The Condorcet paradox shows that

• A)allocations of resources based on majority rule are always inefficient.
• B)problems in counting votes can negate legitimate democratic outcomes.
• C)the order on which things are voted can affect the result.
• D)transitive preferences are inconsistent with rationality.

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Definitions:

Volatility Value

A statistical measure of the dispersion of returns for a given security or market index, often used to quantify risk.

Time Value

The idea that money in hand today is valued higher than an identical sum in the future because of its ability to generate earnings.