The simple majority decision rule may generate results that are
A) efficient,because the projects undertaken are the ones desired by more than 50 percent of the people.
B) efficient,because projects are undertaken only if total benefits exceed total costs.
C) efficient,because the intensity of individuals' preferences are considered.
D) inefficient when the total benefits of projects undertaken are less than the total costs.
E) inefficient when the intensity of individuals' preferences are considered.

Question

Quizplus · Accepted Answer

The simple majority decision rule can be inefficient if projects are approved based on majority preference without considering if the total benefits exceed the total costs, leading to potential inefficiencies.

The Simple Majority Decision Rule May Generate Results That Are