According to the Median Voter Theorem, Majority Rule Will Produce

question 181

True/False

According to the median voter theorem, majority rule will produce an outcome that is inconsistent with transitive preferences.

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Definitions:

Dividend Cut

A reduction in the dividend amount paid by a corporation to its shareholders, often due to financial difficulties or the need to conserve cash.

Bird in the Hand Theory

A theory that suggests investors prefer the certainty of dividend payments to the possibility of much higher future capital gains.

Dividend Distribution

The method by which a corporation's earnings are distributed among its shareholders in the form of dividends.

Retaining Earnings

Profits kept by a company for reinvestment in its operations rather than distributed to shareholders as dividends.