The Arrow impossibility theorem explains
A)why there is no system of voting that will consistently represent the underlying preferences of voters.
B)why government regulation of private markets will always result in a reduction in economic efficiency in these markets.
C)why voters are always rationally ignorant.
D)why it is not possible to provide the economically efficient amount of any public good.

Question

Quizplus · Accepted Answer

The Arrow impossibility theorem states that no system of voting can consistently reflect the underlying preferences of voters. This means that any method of aggregating individual preferences into a collective preference will inevitably violate one or more basic principles of democratic decision-making. Consequently, there is no perfect method of voting that can ensure fair representation of all voters' preferences.

The Arrow Impossibility Theorem Explains