When Each Voter Has a Most-Preferred Outcome for the Expenditure

question 319

Multiple Choice

When each voter has a most-preferred outcome for the expenditure on a particular government program, majority rule will produce the outcome

• A)preferred by the mean (average) voter.
• B)preferred by the median voter.
• C)that causes the political party in power to increase its power.
• D)defined by Arrow's Impossibility Theorem.

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Definitions:

Yield Income

Income generated from investments that pay out returns, such as dividends from stocks or interest from bonds.

Investment Project

An initiative to allocate resources with the expectation of achieving future returns.

Present Discounted Value

The current worth of a future sum of money or stream of cash flows given a specified rate of return, used in discounting to calculate the present value of future earnings or obligations.

Future Income

Expected earnings or revenue that an individual or business anticipates receiving in the future.