The Basic Concept Behind the Median Voter Theorem Is That

question 220

Multiple Choice

The basic concept behind the median voter theorem is that:
I. the median voter is defined as the voter for which half of the other voters want a policy to the left and half of the voters want a policy to the right.
II. when voters vote, regardless of whether they vote closest to their preferences or not, the preference of the median voter is sure to win in a majority win election.
III. if voters vote closest to their preferences, then the preference of the median voter is sure to win in a majority win election.

• A) I only
• B) I and II only
• C) I and III only
• D) III only

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Definitions:

Risk

The exposure to the potential of loss or damage when the outcome is uncertain.

Risk Aversion

The tendency of investors to prefer lower risk options, avoiding higher risk investments even if they offer potentially higher returns.

Expected Return

The profit or loss an investor anticipates on an investment that has various known or expected rates of return.

Discrete Variables

These are variables that represent counts and can only take on distinct, separate values.