The Arrow impossibility theorem
A) explains why it is impossible, in most cases, to eliminate special-interest legislation after it has become law.
B) explains why people can be rational as well as ignorant at the same time.
C) explains why candidates for public office must represent the preferences of the political middle.
D) explains why voting systems do not consistently represent the preferences of voters.
D
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The text asserts that the allocation of resources among firms is efficient. What assumptions must hold for this to be true?
What will be an ideal response?
The McFadden Act was passed to prevent
A) banks from competing on the basis of deposit rates. B) foreign banks from operating in the United States. C) large nationwide banks from forming. D) banks from holding corporate stock as an asset.