A Problem May Arise When Politicians Are Elected by the Votes

question 37

Multiple Choice

A problem may arise when politicians are elected by the votes of 60% or less of the population, because these politicians may not enact

• A) legislation that is focused on numerically small special interest groups.
• B) economic policy in the best interests of 100% of the population.
• C) public policies that fail to benefit social surplus.
• D) pork-barrel legislation using logrolling.

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Definitions:

Risk-averse

A description of an investor's preference for lower risk options, valuing stability over potential higher returns.

Total Utility

The complete enjoyment or advantage gained from the consumption of a specified overall amount of a product or service.

Expected Value

The anticipated value of an investment in the future, taking into account various possible outcomes weighted by their respective probabilities.

Disability Insurance

A type of insurance that provides income in the event that a worker is unable to perform their work and earn money due to a disability.