The Median Voter Theorem Suggests That Democratic Institutions Will Produce

question 64

Multiple Choice

The median voter theorem suggests that democratic institutions will produce the outcome desired by:

• A)individuals with hidden characteristics
• B)only well-informed voters
• C)the median voter only if it is consistent with the preferences of the rest of the electorate
• D)the median voter, regardless of the preferences of the rest of the electorate

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Definitions:

Diminishing Returns

A principle stating that as one input in the production process is incrementally increased, there will be a point at which the added output from each additional unit of input will start to decrease.

Diseconomies of Scale

This phenomenon occurs when a firm's production costs per unit increase as it produces more, due to inefficiencies that arise from scaling up operations.

Economic Profit

The economic result derived from subtracting a business's entire expenses, both explicit and implicit, from its total incoming funds.

Product Price

The amount of money required to purchase a good or service, determined by factors like production cost, market demand, and competition.