Consider the Following Preference Orderings $\succ$ Medical $\succ$ Tax Cut
Councillor 2: Medical

question 6

Multiple Choice

Consider the following preference orderings.
Councillor 1: Education $\succ$ Medical $\succ$ Tax cut
Councillor 2: Medical $\succ$ Tax cut $\succ$ Education
Councillor 3: Tax cut $\succ$ Education $\succ$ Medical
If Councillor 1 gets to be the agenda setter and choose the ordering in which the three councillors vote over the alternatives, which of the following agendas should she set in order to get her most-preferred outcome?

• A) It wouldn't make a difference; the final choice would be the same regardless of the agenda.
• B) First a vote between education and medical, and then the winner against tax cuts.
• C) First a vote between medical and tax cuts, and then the winner against education.
• D) First a vote between tax cuts and education, and then the winner against medical.

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Definitions:

Fixed Dividends

Regular, predetermined dividend payments made by a corporation to its preferred stockholders.

Underwriting

The process by which an individual or institution takes on financial risk for a fee, such as in the issuance of insurance policies or financial securities.

Insurance Companies

Financial institutions that provide coverage, compensating financial losses during accidents, property damage, or other liabilities.

Discount Rate

The interest rate charged by central banks on loans to commercial banks or financial institutions, influencing monetary policy and economic activity.