Table 22-7 -Refer to Table 22-7.The Table Shows the Most Preferred Budget

question 142

Multiple Choice

Table 22-7

-Refer to Table 22-7.The table shows the most preferred budget of 75 voters.In an election,each voter will select the budget closest to his or her most preferred budget.Which of the following statements regarding this information is true?

• A) In an election between a $33 budget and a $37 budget, the $33 budget will win.
• B) Since the median voter theorem implies that the budget of the median voter will win the election, we would expect the overall best budget to be $25, the median of the available budgets.
• C) In an election between a $10 budget and a $40 budget, the $40 budget will win.
• D) Both b and c

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Definitions:

Holder in Due Course

A legal term for a person who has obtained a negotiable instrument in good faith and for value, thus having certain protections.

Holder in Due Course

A party who has acquired a negotiable instrument in good faith and for value, and thus has certain protections against defenses and claims that could be raised against the prior holder.

Indorsement

The act of signing one's name on a financial document, such as a check, thereby transferring rights or title to another party.

Collection Indorsement

An endorsement on a negotiable instrument, such as a check or promissory note, that specifies the particular person to whom the payment is to be made.