Sociotropic Voting Would Involve Decision Making Based on Personal Experiences

question 21

True/False

Sociotropic voting would involve decision making based on personal experiences rather than on perceptions of the economic health of the nation as a whole.

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Definitions:

Opportunity Cost

The loss of potential gain from other alternatives when one particular option is chosen.

Tax Cut

A reduction in the amount of taxes that individuals or corporations owe to the government.

Market Economy

An economic system where decisions regarding investment, production, and distribution are based on supply and demand, with little government intervention.

Market Equilibrium

A situation in which market supply equals market demand, so there is no incentive for price changes unless external conditions change.