Table 22-17 -Refer to Table 22-17. the Table Shows the Preferences of the Preferences

question 416

Multiple Choice

Table 22-17
-Refer to Table 22-17. The table shows the preferences of three types of voters over three possible outcomes: A, B, and C. In addition, the table shows the percentage of voters of each type. Based on this information, which of the following statements is true?

• A)As the Condorcet Paradox predicts, majority rule fails to produce transitive preferences for society.
• B)As Arrow's Impossibility Theorem demonstrates, it is impossible from this information to determine which outcome the voters prefer.
• C)The median voter theorem allows us to conclude that in a vote between B and C, B will win since the Type 2 voter is the median voter.
• D)While the Condorcet Paradox predicts that majority rule may not produce transitive preferences for society as a whole, society's preferences in this case are transitive.

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Definitions:

Gross Profit

The financial gain obtained after subtracting the cost of goods sold from the revenue generated from sales.

Closing Entries

Journal entries made at the end of an accounting period to transfer the balances of temporary accounts to permanent accounts, preparing the accounts for the next period.

Merchandising Business

A type of business that purchases goods and sells them to consumers without changing their form.

Service Business

A business that provides intangible products or services to customers, often involving skilled labor or professional expertise.