Median Voter Decisions May Not Yield Efficient Allocations of Resources

question 8

Multiple Choice

Median voter decisions may not yield efficient allocations of resources because:

• A)votes are allocated differently than income.
• B)externalities may cause private and social costs to diverge.
• C)free riders will cause too few public goods to be produced.
• D)the median voter may not be the same as the mean voter.

---

Definitions:

Unilateral Mistake

An error made by one party in a contract situation, which may not necessarily void the contract unless the other party knew or should have known of the mistake.

Implied Misrepresentation

A false statement or omission made not through direct statements but through implications or conduct that misleads another party.

Undue Influence

Improper or coercive persuasion that leads an individual to act contrary to their free will or without adequate attention to the consequences.

Duress

Coercion or compulsion by threat or force, affecting a person's ability to make a free and informed decision.