Final answer:
The statement that majority rule can fail to produce a single preferred outcome with more than two choices is true due to the potential split of the majority vote among various options.
Step-by-step explanation:
When considering the statement 'Majority rule can fail to produce a single preferred outcome when there are more than two choices', it is indeed true. This scenario can be observed in cases of voting systems where more than two options are available. '
Due to the presence of multiple choices, the majority vote might get split amongst the various options, resulting in a failure to attain a clear winner. This is often referred to as the 'spoiler effect' in the context of elections, where a third-party candidate can split the vote, preventing any single candidate from achieving a majority.
It's also relevant in the concept of Condorcet's paradox, which shows that majority preferences can become cyclical and thus, no absolute winner is found when there are more than two options.