In Figure 2, We Illustrate a Situation Where We Have

question 29

Multiple Choice

In Figure 2, we illustrate a situation where we have a bicameral legislature. The location of the status quo policy is SQ, the location of the median voter in the lower chamber is LC, and the location of the median voter in the upper chamber is UC. Assume that both median voters have a single-peaked utility function and that the support of both chambers is needed to pass a new policy. Assume that a voter will vote for a new policy over the status quo if she is indifferent between them.
Figure 2: Illustrating a Bicameral Legislature

-In Figure 2, what is the range of policies that the median voter in the upper chamber prefers to the status quo?

• A) 3-5
• B) 0-10
• C) 3-6
• D) 3-9
• E) 6-10

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Definitions:

Minimum Quantities

The smallest amount of a product that can be ordered, produced, or maintained in inventory.

Maximized Total Cost

Refers to the highest possible sum of all costs associated with a certain process, project, or production activity.

Raw Materials

The basic, unprocessed resources or inputs used in the production of goods and services.

Labour

The human workforce involved in productive work, especially physical work, in an economy or for a specific project or company.