Final answer:
It is true that majority rule can fail to produce a single preferred outcome when there are more than two choices, due to situations like Condorcet's paradox where collective preferences can be cyclic.
Step-by-step explanation:
The statement that majority rule can fail to produce a single preferred outcome when there are more than two choices is true. This concept is often related to social choice theory or voting systems, which are studied in mathematics and economics. When applying majority rule to situations with more than two options, it's possible to encounter what is known as Condorcet's paradox. This paradox occurs when collective preferences can be cyclic (i.e., A is preferred to B, B is preferred to C, and C is preferred to A), even if the individual preferences of voters are not. As a result, no option wins a majority over every other option, making it impossible to determine a single preferred outcome solely through majority rule.