Asked by Emmanuel Garcia on Jun 12, 2024
Verified
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.
Majority Voting
A voting system where decisions are made and actions are taken based on the preferences of the majority of voters, often applied in democratic governance and organizational decision-making.
Rent-Seeking Behavior
Actions by individuals or businesses to increase their own wealth without contributing to productivity or value creation, often through political manipulation or exploitation of resources.
Irrational Preferences
Choices or decisions that are not in line with conventional logic or economic efficiency.
- Perceive the economic inadequacies due to majority voting and scrutinize potential resolutions to these inadequacies.
Verified Answer
KL
komal lubanaJun 18, 2024
Final Answer :
C
Explanation :
The given scenario demonstrates a voting paradox, where the majority preferences are cyclic (school preferred over dam, dam over road, and road over school), leading to inconsistent choices when trying to determine the most preferred project through pairwise majority voting. This inconsistency is known as the Condorcet paradox.
Learning Objectives
- Perceive the economic inadequacies due to majority voting and scrutinize potential resolutions to these inadequacies.