The Median-Voter Model Attempts to Explain

question 52

Multiple Choice

The median-voter model attempts to explain

• A)why law partners can seldom agree on the division of costs
• B)why, in a democracy, the preferences of the typical voter often will dominate other choices
• C)why democracies can evolve into dictatorships
• D)elections in which candidates present widely different platforms
• E)conditions under which majority rule is better than market exchange

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Definitions:

Gains From Trade

Gains achieved by dividing tasks and trading; in this way people can get more of what they want through trade than they could if they tried to be self-sufficient.

Total Surplus

The sum of consumer surplus and producer surplus; a measure of the total benefit to society from a market transaction.

Consumer Surplus

The differential between consumers’ readiness to pay a certain amount for a service or good and the payment completed.

Equilibrium

The condition in a market where the quantity demanded equals the quantity supplied, leading to no inherent force for price change.