The impossibility theorem is the idea that
A. we cannot devise a voting scheme that respects individual preferences and gives consistent, non-arbitrary results.
B. private parties cannot arrive at the efficient solution without government intervention.
C. it is impossible for lawmakers to get legislation passed without agreeing to help other lawmakers get their legislation passed.
D. it is impossible to exclude someone from enjoying the benefits of a public good.
Answer: A
You might also like to view...
Which of the following is a characteristic of the core?
a. The core is the set of all allocations that cannot be blocked. b. The core is the set of all allocations where the value realized by the members of the coalition are same as what they can realize individually form the core. c. Cores are broken when one or more participants withdraw from the coalition. d. Any allocation that makes even one of the parties to the transaction better off is in the core.
Answer the following statement(s) true (T) or false (F)
1. Trans-boundary pollution linked to electricity generation can be modeled as an international externality whereby the MSB is lower than the MEB of electricity. 2. The Montreal Protocol and its amendments address the phase out of those chemicals primarily responsible for climate change. 3. Chlorofluorocarbons (CFCs) are a group of chemicals believed to contribute to depletion of the ozone layer. 4. The United States ratified the Kyoto Protocol in 2001 during the Bush administration. 5. The flexible mechanisms relevant to the Kyoto Protocol include a system of tradable allowances for greenhouse gases.
In theory, placing a price control on a natural monopoly should:
A. reduce deadweight loss to zero. B. create negative economic profits for the company. C. be easy for government to figure out because of easily accessible information. D. have the same outcome as public ownership.
When there is a decrease in the unemployment rate,
A. The economy moves closer to the production possibilities curve. B. There is a movement along the production possibilities curve. C. The production possibilities curve shifts inward. D. The production possibilities curve shifts outward.