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.

---

Definitions:

Base-Rate Information

The frequency with which an event occurs within a general population.

Availability Heuristic

A cognitive bias where individuals rely on immediate examples that come to mind when evaluating a specific topic, concept, method, or decision.

Base-Rate Information

Refers to the statistical frequency of various phenomena or characteristics within a given population, used to inform judgment and decision-making processes.

Base-Rate Information

Statistical information that represents the prevalence or general occurrence of a particular trait, behavior, or event within a larger population.