Figure 1 Illustrates an Election in Which There Are Seven

question 4

Multiple Choice

Figure 1 illustrates an election in which there are seven voters (A, B, C, D, E, F, G) arrayed along a single left-right issue dimension that runs from 0 (most left) to 10 (most right) . Each voter is assumed to have a single-peaked preference ordering over the issue dimension and to vote for the party that is located closest to her ideal point. The voters are participating in a majority rule election in which there are two parties, P1 and P2, competing for office. These parties can be thought of as "office-seeking" parties since they only care about winning the election and getting into office.
Figure 1: Illustrating the Median Voter Theorem

-What is the ideological position of the median voter in Figure 1?

• A) 1.5
• B) 2
• C) 3
• D) 4
• E) 5
• F) 5.5
• G) 7
• H) 8

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Definitions:

Qualitative Factors

Non-numeric information that affects decisions, including management expertise, company reputation, and employee morale.

Relevant Information

Information that is applicable to the current decision-making process, having the ability to impact the outcome or decision.

Capital Budgeting

The process of planning and evaluating investments in long-term assets to maximize returns or meet financial goals.

Discounted Cash Flow

A valuation method used to estimate the attractiveness of an investment opportunity, calculating the present value of expected future cash flows.