When the Majority of Voters Have Preferences Very Different from Those

question 33

True/False

When the majority of voters have preferences very different from those of the median voter, then the median voter theorem will lead to accurate predictions of the outcomes of elections.

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Definitions:

Prices

The amount of money required to purchase a good or service, determined by factors like demand, supply, and market conditions.

Income

The money received, especially on a regular basis, for work or through investments.

Rational Consumer

An economic concept assuming that consumers make decisions to maximize their utility based on available information and their preferences.

Consumer Equilibrium

In marginal utility theory, the combination of goods purchased that maximizes total utility by applying the utility-maximizing rule. In indifference curve analysis, the combination of goods purchased that maximizes total utility by enabling the consumer to reach the highest indifference curve, given the consumer’s budget line (or budget constraint).