The Arrow Impossibility Theorem Suggests

question 94

Multiple Choice

The Arrow impossibility theorem suggests

• A) democracies are doomed to fail in the long run.
• B) dictatorships are impossible in the long run.
• C) there is no universally applicable decision rule in a majority-rule democracy.
• D) there is no way to make democracy better than a dictatorship.

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Definitions:

Cash Cycle

The period of time it takes for a company to convert its investments in inventory and resources into cash flows from sales.

Receivables Period

The average number of days it takes for a company to collect payments from its customers.

Inventory Period

The average time it takes for a company to sell its inventory and convert it into sales.

Payables Period

The average amount of time it takes for a business to pay its invoices and bills to suppliers.