Final answer:
The statement is true, as the majority rule can indeed fail to provide a clear preferred outcome when there are more than two choices due to the potential for vote splitting and the Condorcet paradox.
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 because when multiple options are present, it's possible for preferences to be divided such that no single option receives more than half of the vote, a scenario often referred to as a 'Condorcet paradox' in social choice theory. The majority rule works best when there are only two choices because one choice will receive more than half of the votes and thus be the preferred option by a majority. However, with more than two choices, votes can be split, and the choice with the most votes might not have a clear majority, leading to an outcome that may not reflect the preference of a majority of voters.