Because of the free-rider problem, respondents to cost-benefit surveys:
A)are unable to evaluate the effect of the project on their personal satisfaction.
B)are typically not benefited directly by government projects
C)have a difficult time identifying explicit costs
D)have little incentive to tell the truth

Question

Quizplus · Accepted Answer

The free-rider problem occurs when individuals benefit from resources or services without paying for them, which can lead to underreporting of their true valuation in surveys, as they might hope to benefit without contributing to the cost.

Because of the Free-Rider Problem, Respondents to Cost-Benefit Surveys