Three Candidates Are Running for Political Office Under a Plurality-Rule

question 12

Multiple Choice

Three candidates are running for political office under a plurality-rule system.Candidate A receives 45 percent of the vote,Candidate B receives 40 percent of the vote,and Candidate C receives 15 percent of the vote.What happens next?

• A)Candidate A wins the election.
• B)Candidate A must run in a second "confirmation" election to ensure that the electorate has chosen the most qualified candidate.
• C)Candidates A and B compete in a run-off election since both candidates are the top two vote getters.
• D)Candidates A and B are in a statistical tie and must compete in a run-off election.
• E)No candidate wins.All three candidates must run again in a second election since they failed to win over 50 percent of the votes.

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Definitions:

Discounting

The process of determining the present value of a payment or a stream of payments that is to be received in the future.

Compounding

The process whereby interest is added to the principal sum, so that from that moment on, the interest that has been added also earns interest.

Demand Curve

A graph representing the relationship between the price of a good and the quantity demanded, with price on the vertical axis and quantity on the horizontal axis.

Loanable Funds

The money available for borrowing in the financial markets, determined by savings and investments.