Explain the paradox of voting that is illustrated in the table below in choices between the same expenditure on three different public goods. The numbers under each name indicate the voting preferences (first, second, or third choice) of each of the

three citizens in the society.



The voting paradox is illustrated by the different voting decisions. In a choice between spending on a hospital and spending on roads, the majority prefers to spend money on roads. In a choice between spending money on roads or police, the majority prefers to spend money on police. Thus it would seem that expenditures for police are the most preferred because that spending is preferred over roads, and, in turn, spending on roads is preferred over hospital spending. However, in a choice between spending on police or a hospital, the majority prefers spending on a hospital. Voter preferences are inconsistent in this case.

Economics

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The demand for a textbook written by Schwarz and Mobley is Q = 20,000 ? 50P; supply is Q = 2,000 + 100P. Students complain about the high price of textbooks, resulting in a price ceiling and, unfortunately, a shortage of texts. Below what price will shortages occur?

Economics

The index of leading indicators is

a. an alphabetical listing of the most popular indicators in the economy for a given month. b. a composite index of indicators that provides information on the future direction of the economy. c. a measure of the level of aggregate output. d. a composite index designed to measure inflation.

Economics