The Median Voter Theorem States That the Outcome of a Majority

question 121

Multiple Choice

The median voter theorem states that the outcome of a majority vote

• A)tends to favour the preferences of high income individuals and ignore the median voter.
• B)is likely to represent the preferences of society's middle-income voter.
• C)is likely to represent the preferences of the voter who is in the political middle.
• D)is determined by the average consumer and producer in an economy.

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Definitions:

Net Present Value

A financial metric that calculates the difference between the present value of cash inflows and the present value of cash outflows over a period of time.

Dollar Amount

Indicates a specific value of money, usually in U.S. dollars, mentioned in financial transactions, budgets, and pricing.

Minimax Strategy

A decision-making strategy, especially in game theory, aiming to minimize the possible loss for a worst case (maximum loss) scenario.

Largest Cost

Refers to the highest expense in either a specific project or operation typically identified to assess and reduce financial outlays.