Assuming that the median voter model accurately explains how public sector decision are made, resources will be allocated efficiently if _____.
a. preferences are single-peaked and individuals prefer outcomes closer to their preferred outcome rather than outcomes farther away
b. rational ignorance and cyclical majorities are not present
c. resources were already allocated efficiently in the private sector
d. the median voter’s demand is the same fraction of total demand as his tax share is of total taxes
ANSWER
d
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