When Majority Rule Voting Is Used to Determine Whether to Purchase

question 43

Multiple Choice

When majority rule voting is used to determine whether to purchase a public good,

• A) the efficient outcome is assured.
• B) the median voter gets her way.
• C) the sum of the marginal benefits must equal marginal cost.
• D) the marginal benefit of the good to the median voter equals the good's marginal cost.

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Definitions:

National Culture

The set of shared values, beliefs, and norms that affect the behavior and practices of individuals within a country.

Geert Hofstede

Geert Hofstede is a Dutch social psychologist known for his research on cross-cultural groups and organizations, especially for developing the Hofstede's cultural dimensions theory, which analyzes cultural differences.

Domestic Marketplace

The market within a country's borders, where goods and services are traded domestically.

International Environment

The global context in which businesses operate, encompassing economic, political, social, and cultural dimensions.