Arrow suggests that any social choice process should be applicable to any set of preferences for individuals -- because we can't be sure individual preferences are always rational.
Answer the following statement true (T) or false (F)
False
Rationale: Arrow's theorem only suggests (with the Universal Domain axiom) that the social choice process should be applicable to any set of rational preferences on the part of individuals.
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Income elasticity measures how a good's quantity demanded responds to
A) producers' incomes. B) change in buyers' incomes. C) change in the price of another good. D) change in the goods price.
Studies of mutual fund performance indicate that mutual funds that outperformed the market in one time period usually
A) beat the market in the next time period. B) beat the market in the next two subsequent time periods. C) beat the market in the next three subsequent time periods. D) do not beat the market in the next time period.
For a country such as the U.S., the wealth effect exerts a very important influence on the slope of the aggregate-demand curve, since U.S. wealth is large relative to wealth in most other countries
a. True b. False Indicate whether the statement is true or false
Under which of the following situations will a tariff imposed by a country fail to reduce imports by as much as expected?
A. The domestic supply of the import-competing products is more price-elastic than was expected. B. The current tariff rate is less than the prohibitive tariff rate. C. The domestic quantity demanded of the imported product is less responsive to price changes than was expected. D. The foreign export quantity supplied of the good imported by this country is more responsive to changes in the world price than was expected.