What Is Codorcet's Paradox

question 7

Multiple Choice

What is Codorcet's paradox?

• A) An option that beats all other options in a series of pair-wise contests.
• B) A situation in which an actor has cyclical (non-transitive) preferences over alternatives.
• C) A situation in which the collective preferences of a group are not guaranteed to be rational, even though each of the actors in the group individually have rational preferences.

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Definitions:

At a Discount

Selling or buying something for less than its nominal or face value.

At a Premium

When a security is traded above its face value or nominal value.

Compounded Annually

Interest added to the principal sum of a deposit or loan once per year, resulting in interest on interest.

Outstanding Balance

The total amount owed on a debt, excluding interest, that remains unpaid.