In the context of public finance, the 'Median Voter Theorem' predicts that: MCQ with Answer and Explanation

In the context of public finance, the 'Median Voter Theorem' predicts that:
A. Under certain conditions, the outcome of majority voting will reflect the preference of the median voter
B. Only unanimous decisions are possible
C. The outcome always reflects the preference of the richest voter
D. Voting never produces consistent outcomes
Answer: Option A
Solution (By JKSSB Mock Tests)
The median voter theorem states that if preferences are single-peaked, majority rule yields the outcome most preferred by the median voter.

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Practice More Economy Set 1 Questions

Question #1
The concept of 'Subjective Well-Being' in economics refers to:
A. Only physical health indicators
B. Individuals’ own evaluations of their lives, typically measured by surveys of happiness or life satisfaction
C. Only objective measures of income
D. Only environmental quality

Correct Answer: Option B


Explanation:
Subjective well-being encompasses self-reported measures of happiness, life satisfaction and emotional states, which have become an important complement to traditional objective indicators of welfare.

This question belongs to: Economy GK Economy Set 1
Question #2
The concept of 'Economic Value Added' (EVA) is defined as:
A. Only cash flow
B. Only revenue minus explicit costs
C. Only accounting profit
D. Net operating profit after tax minus the opportunity cost of capital employed

Correct Answer: Option D


Explanation:
Economic Value Added is a measure of residual income calculated as net operating profit after tax minus a charge for the opportunity cost of the capital employed in the business.

This question belongs to: Economy GK Economy Set 1
Question #3
The 'International Solar Alliance' is headquartered in:
A. Gurugram, India
B. New York
C. Geneva
D. Paris

Correct Answer: Option A


Explanation:
The International Solar Alliance is headquartered in Gurugram, India.

This question belongs to: Economy GK Economy Set 1