Because Majority Voting Fails to Incorporate the Strength of the Preferences

question 61

Multiple Choice

Because majority voting fails to incorporate the strength of the preferences of individual voters, it

• A) creates negative externalities.
• B) under some circumstances produces economically inefficient outcomes.
• C) leads to market failure.
• D) leads to politics dominated by special-interest groups.

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Definitions:

Annuity

An investment instrument offering a series of regular payments to a person, usually implemented as a component of retirement planning.

Coverdell Education Savings Account

A tax-advantaged savings account designed to pay for education expenses from kindergarten through post-secondary.

AGI

Stands for Adjusted Gross Income, which is an individual's total gross income minus specific deductions allowed by the IRS, important for determining taxable income.

Coverdell Education Savings Account

An investment account in the United States that offers tax benefits to incentivize saving for upcoming educational costs.