A Situation in Which Society May Not Be Able to Rank

question 61

Multiple Choice

A situation in which society may not be able to rank its preferences consistently through paired-choice majority voting refers to

• A) logrolling.
• B) the paradox of voting.
• C) the median-voter model.
• D) the special-interest effect.

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Definitions:

Net Cash Flows

The difference between a company's cash inflows and outflows within a defined period.

Annuity

A financial instrument that provides a consistent flow of payments to a person, mainly serving as a source of income for people in retirement.

Equal Cash Flow

A scenario in which cash inflows or outflows are the same in each period.

Internal Rate of Return Method

A capital budgeting method that calculates the return on investment by setting the net present value of cash flows equal to zero.