Economist Kenneth Arrow Wrote a Famous Book in 1951 in Which

question 167

Multiple Choice

Economist Kenneth Arrow wrote a famous book in 1951 in which he took up the question,

• A) Is there a perfect voting system?
• B) Are preferences transitive?
• C) Is a dictatorship a good form of government?
• D) Should the president of the United States be elected to a single, six-year term?

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Definitions:

Expense Recognition

An accounting principle that dictates the conditions under which expenses are recognized and reported in financial statements.

Revenue Recognition

The principle that dictates the specific conditions under which revenue is recognized and recorded in the accounts.

Realization of Revenue

The realization of revenue occurs when a company has earned its revenue—typically through the delivery of goods or services—and it can be recognized on the financial statements.