The Condorcet Paradox

question 369

Multiple Choice

The Condorcet paradox

• A)demonstrates that the order in which one votes on options may influence the outcome.
• B)demonstrates that majority voting by itself may not reveal the outcome that society wants.
• C)disproves Arrow's impossibility theorem.
• D)Both a and b are correct.

---

Definitions:

Market Value

The price in the market at which assets or services can currently be exchanged.

Investment's Cost

The total amount of money spent to acquire an investment, including all charges and fees associated with the purchase.

Average Accounting Return Rule

A capital budgeting criterion that measures the profitability of an investment as the average net income divided by the average book value.

Profitability Index Rule

A capital budgeting technique used to decide whether to invest in a project, calculated as the present value of future cash flows divided by the initial investment cost.