Suppose that residents of a town are asked to vote on the best way to improve the safety of an intersection. The three choices are: a stoplight, a 4-way stop, and a 2-way stop. When the mayor asks the residents to choose between a stoplight and a 4-way stop, the residents choose a 4-way stop. Then, when the mayor asks them to choose between a 4-way stop and a 2-way stop, they choose a 2-way stop
However, if the mayor firsts asks the residents to choose between a 4-way stop and a 2-way stop, they choose a 2-way stop. Then, when the mayor asks the residents to choose between a 2-way stop and a stoplight, they choose a stoplight. What does this example illustrate?
a. Arrow's impossibility theorem
b. the Condorcet paradox
c. a Borda count
d. the median voter theorem
b
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Why don't the winners from free trade win the political argument?
What will be an ideal response?
When Argentines increase their savings in U.S. dollars, the U.S. money:
A. demand curve shifts left. B. supply curve shifts left. C. supply curve shifts right. D. demand curve shifts right.
An upward shift in the consumption function, other things being equal, could be caused by households:
A. becoming optimistic about the state of the economy. B. becoming pessimistic about the state of the economy. C. expecting future income and wealth to decline. D. experiencing a tax increase.
Each of the following has been typical of Japanese trading policies except
A. they targeted the large American consumer market. B. the Japanese market was closed to American producers. C. they went head to head against American companies, underselling American TV and other electronic producers. D. high tariffs.