Arrow's Impossibility Theorem Is "Disturbing" in the Sense That It

question 41

Multiple Choice

Arrow's impossibility theorem is "disturbing" in the sense that it proves that

• A)no voting system is perfect.
• B)only a dictator can produce a desirable social outcome.
• C)the preferences of the wealthy should be given more weight than the preferences of the poor.
• D)the centuries-old Condorcet paradox was not a paradox after all.

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Definitions:

Allowance Method

An accounting technique used to adjust accounts receivable for the portion that is estimated to be uncollectible.

Bankruptcy Notice

A legal document issued by a court or a legal authority indicating that an individual or entity has declared bankruptcy, outlining the conditions and implications.

Write-Off

The accounting action of declaring that an asset, typically accounts receivable, is uncollectible and removing its value from the books.

Estimated Bad Debts

A provision for accounts receivable that are not expected to be collected.