For certain public projects such as building a dam on a river or a bridge to an island,what procedure is a government is likely to use to determine what quantity of a public good should be supplied?

Question

Quizplus · Accepted Answer

The government is likely to use a cost-benefit analysis to determine what quantity of a public good should be supplied. This involves evaluating the costs of producing the good against the benefits it will provide to society as a whole. This analysis takes into account factors such as the expected usage of the public good, the economic impact on surrounding areas, and any environmental or social considerations. This approach provides a more comprehensive and objective method to determine the appropriate level of public good provision.

For Certain Public Projects Such as Building a Dam on a River