Which statement is TRUE?
A)It is possible to observe how much people benefit from consuming an additional unit of a public good.
B)It is difficult to get an accurate estimate of the marginal social benefits of public goods because individuals have an incentive to distort the truth about their willingness to pay.
C)Individuals tend to underestimate the amount of a public good that they desire.
D)It is straightforward to estimate the marginal social benefits of public goods.

Question

Quizplus · Accepted Answer

This statement is true because individuals may not reveal their true willingness to pay for public goods, especially if they believe it will lead to higher taxes or fees. As a result, it can be difficult to accurately estimate the marginal social benefits of public goods.

Which Statement Is TRUE