Voters are making a choice to spend money on three projects: a dam, a school, or a road. In the choice between the dam and the school, the majority favors the school. In a choice between a dam and a road, the majority favors a dam. In a choice between a road and a school, the majority favors a road. These rankings indicate that majority voting may:
A. Result in economically efficient outcomes because of rent-seeking behavior
B. Reflect irrational preferences
C. Produce inconsistent choices
D. Lead to consistent choices in spite of irrational community preferences
C. Produce inconsistent choices
Economics
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Commitment strategies:
A. are not necessary to reach a mutually beneficial equilibrium in repeated games. B. usually fail to work. C. are always needed to reach a mutually beneficial equilibrium in single-round games. D. are not observed in reality.
Economics
Which would decrease real planned investment demand?
A. a increase in new technologies available B. an increase in business taxes C. a decrease in nominal interest rates D. a increase in profit expectations
Economics