Which of the Following Is TRUE About the Political and Market

question 301

Multiple Choice

Which of the following is TRUE about the political and market systems of voting?

• A) The political voting system functions according to proportional rule, while the market voting system functions according to majority rule.
• B) The political voting system functions according to majority rule, while the market voting system functions according to proportional rule.
• C) The political voting system functions according to minority rule, while the market voting system functions according to majority rule.
• D) The political system and the market system are identical.

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Definitions:

Total Cost

The full expense incurred in the production or acquisition of goods or services, including both fixed and variable costs.

Marginal Cost

The supplementary charge triggered by the manufacture of one extra unit of a product or service.

Average Variable Cost

The total variable cost divided by the quantity of output produced; it represents the variable cost per unit of output.

Marginal Cost

The incremental cost associated with the production of an additional unit of a product or service.