Table 22-3 the Citizens of Paradoxopolis Will Decide Whether to Build a Build

question 127

Multiple Choice

Table 22-3
The citizens of Paradoxopolis will decide whether to build a new school,build a new park,or build a new road.Exactly one of the three choices will prevail,and the choice will be made by way of pairwise voting,with the majority determining the outcome on each vote.The preferences of the voters are summarized in the table below.

-Refer to Table 22-3.Which of the following statements is correct?

• A) In a pairwise election,"school" beats "road."
• B) In a pairwise election,"road" beats "park."
• C) In a pairwise election,"school" beats "park."
• D) All of the above are correct.

---

Definitions:

Warrants

Financial derivatives that give the holder the right, but not the obligation, to buy or sell a security, usually equity, at a predetermined price before expiration.

Risk-Free Interest Rate

The theoretical rate of return on an investment with zero risk, typically represented by government bonds.

Call Option

An option contract that gives the holder the right, but not the obligation, to buy a specified quantity of an underlying asset at a set price within a specific period.

Strike Price

The predetermined price at which an option's contract can be exercised, allowing for the purchase or sale of the underlying asset.