The Idea That a Voting Scheme Cannot Be Devised That

question 255

Multiple Choice

The idea that a voting scheme cannot be devised that respects individual preferences and gives consistent, nonarbitrary results is known as

• A) the impossibility theorem.
• B) the independence of irrelevant alternatives.
• C) logrolling.
• D) Samuelson's theory.

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Definitions:

Stock Index

An indicator used to measure and report value changes in a selection of stocks, which represents a specific segment of the stock market.

Risk-Free Rate

The expected yield from an investment that carries no risk, commonly exemplified by state bonds.

Dividend

A portion of a company's earnings distributed to its shareholders, typically in the form of cash or additional shares.

Cash Settlement

The provision of some futures contracts that requires not delivery of the underlying assets but settlement according to the cash value of the asset.