Why does the private market succeed in meeting consumers’ demands while majority voting in many cases fails to do the same?
Please provide the best answer for the statement.
The key failure of majority voting is the inability to incorporate the strengths of voters’ preferences. Each person only gets one vote regardless of how strongly they are for or against a certain policy. Consequently, the total preference (willingness to pay) of society may not outweigh the cost of a public venture or the total benefit exceeds the cost, but through majority voting the policy is not adopted.
The private market differs because consumers are able to obtain goods even when the majority of the population doesn’t prefer them or individual consumers can choose to not purchase a highly popular good. The market provides goods based on the strength of consumers’ preferences for certain goods and this results in an efficient outcome.
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A) interbank loan rate. B) the riskless rate. C) TED spread. D) discount rate.
In a sequential game, one firm will act first and then other firms will respond
Indicate whether the statement is true or false
Protecting intellectual property rights:
A. always benefits society. B. never benefits society. C. rarely affects society overall. D. is hotly debated as to whether it benefits or costs society overall.
According to liquidity preference theory, a decrease in money demand for some reason other than a change in the price level causes
a. the interest rate to fall, so aggregate demand shifts right. b. the interest rate to fall, so aggregate demand shifts left. c. the interest rate to rise, so aggregate demand shifts right. d. the interest rate to rise, so aggregate demand shifts left.