When a Decision Is Made Based on a Simple Majority

question 16

True/False

When a decision is made based on a simple majority vote it is possible for the total benefits to the community of this decision to be less than the total costs to the community of this decision.

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Definitions:

Economic Theory

Economic theory encompasses models and principles that explain the functioning of economies, markets, and the behavior of economic agents. It seeks to understand how resources are allocated, prices are set, and wealth is distributed.

Demand Curves

Graphical representations showing the relationship between the price of a good and the quantity demanded, typically downward sloping.

Monopolistically Competitive

A scenario where numerous companies compete in the same industry by offering slightly unique products or services, giving consumers choices.

Elastic

Describes a situation in economics where the quantity demanded or supplied of a good changes significantly as its price changes.