A Person with Multiple-Peaked Preferences Is Always Made Worse Off

question 27

True/False

A person with multiple-peaked preferences is always made worse off as the quantity of a pure public good is increased, or decreased, once he or she attains his or her most-preferred political outcome.

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Definitions:

Per Share

A financial metric that represents some quantity divided by the total number of outstanding shares of a company, often used in financial ratios.

First-day Returns

The percentage change in price of a stock or other security from its offering price on its first day of public trading.

SIPC

SIPC stands for the Securities Investor Protection Corporation, which is a nonprofit organization that insures investors' securities and cash in the event a brokerage firm goes bankrupt or faces financial difficulties.

Brokerage Firm

A company that acts as an intermediary between buyers and sellers of financial securities, providing investment services and advice.