Economics · Social Choice Theory
Arrow's Impossibility Theorem demonstrates that under a specific set of reasonable criteria, it is impossible to formulate a social welfare function that satisfies all conditions. This means:
- 1Social choice is always inherently optimum
- 2It is impractical to find political solutions to economic problems
- 3It is possible to devise a perfect weak social ordering
- 4It is impossible to consistently aggregate individual preferences into a rational social ordering✓
Correct answer
It is impossible to consistently aggregate individual preferences into a rational social ordering
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