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:

Correct Rejection

In signal detection theory, the accurate identification that a signal is not present.

False Alarm

An erroneous alert or notification indicating the presence of a threat or condition that in reality does not exist.

Miss

To fail to hit, reach, catch, or otherwise make contact with something; also used to express a feeling of loss or absence.

Signal-detection Theory

A framework for understanding how individuals discern between important stimuli and background noise under conditions of uncertainty.