Principles of Economics, 7th Edition

Published by South-Western College
ISBN 10: 128516587X
ISBN 13: 978-1-28516-587-5

Chapter 22 - Part VII - Frontiers of Microeconomics - Quick Check Multiple Choice - Page 478: 4

Answer

b. leads to social preferences that are not transitive

Work Step by Step

The Condorcet paradox shows that majority rule fails to produce a ranking of outcomes that always satisfies transitivity. As an example, A > B and B > C, then A should beat C in a transitive scenario. However, if C > A in the next result, it would clearly indicate that the results in a result that is not transitive since A does not beat C.
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