Final answer:
The statement that majority rule can fail to produce a single preferred outcome when there are more than two choices is true, as seen in voting cycles. Cost Benefit Analysis is a tool used to compare the costs and benefits during decision-making. Utility is a principle aimed at achieving the greatest happiness for the most people, but can be difficult to ascertain in situations with complex preferences.
Step-by-step explanation:
True or false: Majority rule can fail to produce a single preferred outcome when there are more than two choices. The statement is true. This phenomenon occurs within a voting context, known as a voting cycle, where voters may have preferences that when ranked, result in a cyclical pattern. For example, the majority can prefer policy A over policy B, policy B over policy C, and yet also prefer policy C over policy A, leading to no definitive preferred outcome despite a clear majority on individual comparisons. This illustrates the complex nature of collective decision-making processes and the limitations of simple majority rule.
When making decisions, individuals often perform a cost/benefit analysis, weighing the marginal costs against the marginal benefits. Cost Benefit Analysis is a primary tool used in this process, where a T-shaped chart can be employed to lay out the costs on one side against the benefits on the other, facilitating a clear comparison between what is sacrificed (money, effort, etc.) and what is gained (money, time, experience, etc.).
Utility is another principle often referenced in decision-making, where the goal is to choose an option that produces the greatest amount of happiness or satisfies the greatest number of interests for the most people. However, as the example of the voting cycle shows, reaching a decision that maximizes utility can be challenging when the preferences of the individuals involved are complex.