Kenneth Arrow Proved That the Voting System That Satisfied All

question 131

Multiple Choice

Kenneth Arrow proved that the voting system that satisfied all of the properties of his "perfect" voting system was

• A)one in which a single person (a "dictator") imposes his preferences on everyone else.
• B)pairwise majority voting.
• C)majority voting that is not pairwise.
• D)None of the above is correct. Arrow proved that no voting system can satisfy all of the properties of his "perfect" system.

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Definitions:

Economic Losses

Financial losses incurred when the costs of producing goods or services exceed the revenue earned from selling them.

Market Supply

The total amount of a specific good or service available for purchase at any given price level in a market, representing the combined supply of all sellers.

Price-Taker Industry

An industry in which individual firms have no control over the price of their product because the product is standardized, leading them to accept the prevailing market price.

Economic Profits

The difference between total revenue and total costs, including both explicit and implicit costs, indicating the extent to which a firm exceeds the opportunity cost of its resources.