Economist Kenneth Arrow Has Shown Mathematically That No System of Voting

question 87

Multiple Choice

Economist Kenneth Arrow has shown mathematically that no system of voting will consistently represent the underlying preferences of voters.This finding is called

• A)the Arrow impossibility theorem.
• B)Arrow's median voter model.
• C)Arrow's Amendment to the public choice model.
• D)Arrow's majority vote paradox.

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Definitions:

Haircuts

A reduction applied to the value of assets for purposes of calculating capital requirements, risk, or losses.

Productive

The efficiency at which an individual, company, or economy can convert input resources into useful output.

Diminish Profits

The reduction in the amount of earnings as a result of increased costs, decreased revenue, or both.

Economic Profit

The financial difference created by subtracting total explicit and implicit expenses from total revenue in a company.