The Arrow impossibility theorem suggests
A) democracies are doomed to fail in the long-run.
B) dictatorships are impossible in the long-run.
C) there is no universally applicable decision rule in a majority-rule democracy.
D) there is no way to make democracy better than a dictatorship.
C
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An example of a horizontal integration would be a merger between
a. a newspaper and a television station. b. two grocery store chains. c. Intel and Dell. d. Delta Airlines and American Airlines.
If a conflict of interest exists
A) it will always have serious adverse consequences. B) it may not have a serious adverse consequences if the incentive to take advantage of the conflict is low. C) the government needs to step in to pass legislation to remove the conflict. D) there will not be serious adverse consequences, even if the incentive to take advantage of the conflict is low.
When quantity supplied is more than quantity demanded:
a. supply shock b. shortage c. excess supply d. disequilibrium e. search costs
Recall the Economics in Practice on page 371: According to a study discussed in the Economics in Practice, when students were moved from a class taught by a below-average teacher to one at the 75th percentile, the move
A. increased the students' future earnings by 3.5% per year. B. made no difference on the students' future annual earnings. C. increased the students' future earnings by more than 50% per year. D. actually decreased the students' future annual earnings.