Final answer:
The statement is true; majority rule can fail to produce a clear outcome when multiple choices exist due to the occurrence of situations like the Condorcet Paradox, highlighting the complexities in group decision-making.
Step-by-step explanation:
The statement is true: majority rule can fail to produce a single preferred outcome when there are more than two choices. This is a common dilemma in decision-making processes known as the Condorcet Paradox, where a collective preference becomes cyclical and does not lead to a clear winner, even under majority rule. For instance, consider a scenario where three families have to choose from three different entrees for a celebration. Each family prefers a different entree, leading to a situation where no single option gets the majority of votes.
This kind of voting paradox shows the complexity of collective decision-making and the limits of majority rule. The complexities rise further when the concept of majority itself is not clear, exemplified by the various preference orders different individuals or groups might have, even with a simple majority system. It's important to understand that while majority rule is a fundamental concept for making collective decisions, it does not always guarantee a clear and decisive outcome.