Scenario 22-2 ​

question 130

Multiple Choice

Scenario 22-2
​
At issue in a particular city vote is how much to spend, per person, on road repair next year. Among the 10,000 voters, 2,900 prefer to spend $500 per person, but no more; 2,200 prefer to spend $600 per person, but no more; 1,900 prefer to spend $800 per person, but no more; 1,600 prefer to spend $1,200 but no more, and 1,400 prefer to spend $1,400 per person, but no more.
-Refer to Scenario 22-2. If there is a vote on whether to spend $600 per person or $800 per person, the median voter will vote to spend

• A)$800 per person and the voting outcome will be $800 per person.
• B)$800 per person and the voting outcome will be $600 per person.
• C)$600 per person and the voting outcome will be $800 per person.
• D)$600 per person and the voting outcome will be $600 per person.

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Definitions:

Defined Contribution Plan

A retirement plan where an employee, employer, or both make contributions on a regular basis, but the final benefit received depends on the plan's investment performance.

Risk-free Return

The theoretical return on an investment with zero risk of financial loss, typically associated with government bonds.

Standard Deviation

A statistical measurement that depicts the variation or dispersion of a set of values, commonly used in finance to measure the volatility or risk of an investment.

Defined Contribution Plan

A type of retirement savings plan where the amount contributed to the plan is defined, but the future benefit amounts are not guaranteed.