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
You might also like to view...
Interdependent decision making on price, quality, or advertising is characteristic of
a. perfect competition b. monopolies c. oligopolies d. monopolistic competition e. both oligopolies and monopolistic competition
The rationale for ability-to-pay taxation and the contention that those with large incomes should pay more taxes both absolutely and relatively is that:
A. high-income receivers are generally in a better position to shift taxes than are low-income receivers. B. the transfer system is regressive and it is therefore essential to have an offsetting progressive tax structure. C. rational consumers spend their first dollars of income on the most urgently desired goods and successive dollars on less essential goods. D. taxes should be paid for financing public goods in direct proportion to the satisfaction an individual derives from those goods.