In a public goods context,it is difficult to measure its impact on real income because
A) public goods are generally free to the public.
B) they make up a small percentage of total GDP.
C) people do not reveal how they value public goods.
D) inflation decreases the value of the good.

Question

Quizplus · Accepted Answer

Public goods are difficult to measure because individuals do not reveal how much they value them. Because public goods are free and open to everyone, individuals may not have a direct incentive to reveal their willingness to pay for them. Thus, it is difficult to accurately measure the impact of public goods on real income.

In a Public Goods Context,it Is Difficult to Measure Its