The Arrow Impossibility Theorem Explains

question 164

Multiple Choice

The Arrow impossibility theorem explains

• A)why there is no system of voting that will consistently represent the underlying preferences of voters.
• B)why government regulation of private markets will always result in a reduction in economic efficiency in these markets.
• C)why voters are always rationally ignorant.
• D)why it is not possible to provide the economically efficient amount of any public good.

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Definitions:

Profit Maximization

The method through which a company identifies the pricing and production quantity that yields the highest profit.

Human Capital

The skill set, knowledge base, and experiential accumulation found in people or populations, looked at through their financial value or cost burden to a company or a country.

Demand For Female Labor

The desire or need for workforces comprised of women, often discussed in terms of how economic, social, and policy changes affect employment opportunities for females.

Male Labor

The segment of the workforce comprising men, often analyzed in demographic and economic studies.