Suppose the Voters in a Small Country Are Choosing Between

question 160

Multiple Choice

Suppose the voters in a small country are choosing between two options,A and B.After the voting is complete it is discovered that option A recevied 100% of the votes with option B receiving no votes.After the vote,however,the country's leader decides that option B is better for the people and implements B rather than A.The voting system in this country fails which of Arrow's properties of a desirable voting system?

• A) Unanimity
• B) Transitivity
• C) Independence of irrelevant alternatives
• D) No dictators

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Definitions:

Excess Capacity

A situation where a firm is producing at a level less than its maximum possible output, leading to unused resources.

Equilibrium Level

The equilibrium level is a state where supply and demand balance each other, and market forces such as price remain stable.

Monopolistically Competitive

A market structure where many firms sell products that are similar but not identical, allowing for some degree of market power.

Pure Monopolist

A market structure where a single seller dominates, facing no competition in selling its products or services.