Final answer:
The statement is true; majority rule can fail to produce a single preferred outcome when there are multiple choices due to vote splitting and the Condorcet paradox, where no single option wins a majority.
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. When there are more than two choices available, majority rule may not always lead to a clear outcome due to the possibility of vote splitting or the Condorcet paradox, which occurs when voters' preferences are cyclical and no single option is preferred above all others by a majority. This can result in situations where no choice receives more than half of the votes, making it impossible to determine a single preferred outcome under majority rule.