Assume That Councillor 3 Has to Take a Family Member $\succ$

question 5

Multiple Choice

assume that Councillor 3 has to take a family member to the emergency room and has a very poor experience with the level of medical care provided at the local hospital. This leads her to view improving medical care as a higher priority than improving education in the municipality, if money is to be spent improving any programs. Councillors 1 and 2 do not change their preference orderings. Thus, the councillors now have the following preference orderings over the spending choices:
Councillor 1: Education $\succ$ Medical $\succ$ Tax cut
Councillor 2: Medical $\succ$ Tax cut $\succ$ Education
Councillor 3: Tax cut $\succ$ Medical $\succ$ Education
Assume that the councillors hold a round-robin tournament that pits each alternative against every other alternative in a series of pair-wise votes. The winner is the alternative that wins the most contests. Based on this information, answer the following four questions.
-Which of the outcomes, if any, is a Condorcet winner?

• A) education
• B) medical
• C) tax cut
• D) there is no Condorcet winner in this example

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Definitions:

Double-Declining-Balance

A method of accelerated depreciation which computes depreciation at twice the straight-line rate, applied to a decreasing book value each year.

Footnote Disclosure

Additional information provided at the bottom of financial statements, explaining the numbers or policies above.

Cumulative Effect Change

The aggregate change in a company's earnings resulting from a change in accounting principle, reported in the period in which the change is made.

Opening Retained Earnings

The balance of retained earnings at the beginning of the accounting period.