Majority Voting Fails to Incorporate the Strength of the Preferences

question 119

Multiple Choice

Majority voting fails to incorporate the strength of the preferences of individual voters and therefore

• A) reduces the power of the median voter.
• B) is the primary reason for public sector failure.
• C) may produce economically inefficient outcomes.
• D) creates the opportunity for the fallacy of limited decisions.

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Definitions:

Direct Labor

The labor cost attributed directly to the production of goods or services.

Standard Cost

A predetermined cost of manufacturing a single unit or a number of units of a product, calculated for managerial accounting purposes.

Materials Quantity Variance

A measure of the difference between the actual quantity of materials used in production and the expected quantity, multiplied by the standard cost per unit.

Materials Price Variance

The deviation from the standard to the real price of materials, calculated by multiplying this difference by the amount of materials bought.