In Figure 2, We Illustrate a Situation Where We Have

question 1

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

-If the upper chamber is the agenda setter and can make take-it-or-leave-it proposals, where on the left-right issue dimension will the lower chamber make its policy proposal?

• A) 3
• B) 4
• C) 5
• D) 6
• E) 7

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Definitions:

General Fund

The primary operating fund of a governmental entity, used to account for all financial resources except those required to be accounted for in another fund.