A Dictator Is Most Likely to

question 43

Multiple Choice

A dictator is most likely to

• A) adopt a Rawlsian social welfare function.
• B) maximize her own utility.
• C) place equal weight on everyone's utility function.
• D) have nontransitive preferences.

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Definitions:

Annual Coupon Rate

The annual interest rate paid by a bond issuer to its holder, expressed as a percentage of the bond's face value.

Market Price

The immediate cost at which one can buy or sell a service or asset in the marketplace.

Semiannually

Occurring twice a year, commonly used in the context of interest payment schedules or bond coupon payments.

Yield To Maturity

The expected total yield on a bond if it is retained until its maturity date.