Under Representative Democracy,_____

question 62

Multiple Choice

Under representative democracy,_____

• A)the preferences of a median voter are overridden by the outcome of majority rule.
• B)people vote directly on issues related to the choices made in the public sector.
• C)representatives make public choices that reflect constituents' views.
• D)representatives are always a part of the losing side.
• E)each individual gets whatever amount he or she is willing and able to buy.

---

Definitions:

Capital Asset Pricing Model

A model that describes the relationship between systematic risk and expected return for assets, particularly stocks.

Risk-Free Rate

The rate of return of an investment with zero risk, serving as a benchmark for evaluating other investments.

Discount Rate

The interest rate used to determine the present value of future cash flows.

Capital Projects

Long-term investment projects requiring significant sums of money to acquire, improve, or maintain physical assets.