Final answer:
The statement is true, as majority rule can fail to produce a single preferred outcome when there are multiple choices due to vote splitting and the 'spoiler effect' in plurality voting systems.
Step-by-step explanation:
The statement, True or false: Majority rule can fail to produce a single preferred outcome when there are more than two choices, is indeed true. In voting systems, especially when using plurality voting, having more than two options can lead to what is known as the 'spoiler effect' where votes are split among similar candidates or choices, potentially leading to a situation where a preferred choice doesn't win the majority. This phenomenon is related to social choice theory, which studies collective decision processes and voting systems.