The Arrow impossibility theorem shows that
a. democracy should be abandoned as a form of government.
b. it is impossible to improve upon democratic voting methods as a mechanism for social choice.
c. all voting systems are flawed as a mechanism for social choice.
d. the median voter's preferences will always win in a two-way vote.
c
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Based on the figure below. Starting from long-run equilibrium at point C, a tax cut that increases aggregate demand from AD to AD1 will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies. 
A. D; C B. B; C C. B; A D. D; B
The government's court case against Microsoft is an example of:
a. predatory pricing. b. antitrust enforcement. c. economic regulation. d. the regulatory dilemma.
Assume that supply increases slightly and demand increases greatly. Which of the following will happen?
a. Equilibrium price will fall and equilibrium quantity will rise. b. Equilibrium price will rise and equilibrium quantity will fall. c. Equilibrium price will rise and equilibrium quantity will rise. d. Equilibrium price will fall and equilibrium quantity will fall. e. Neither equilibrium price nor equilibrium quantity will change.
To estimate the value of a statistical life, economists sometimes look at the decisions that people make that will change their risk of death. For example, people may accept a more dangerous job in exchange for higher pay. This method of determining the value of a statistical life is known as
A. the trade-off method. B. the actuarial method. C. revealed preference. D. stated preference.