When a good is not easily excludable, what people pay for it will:
A)reflect the real value they place on it.
B)exactly equal the social benefit of the good.
C)not necessarily reflect the real value they place on it.
D)be greater than the social benefit of the good.

Question

Quizplus · Accepted Answer

When a good is not easily excludable, it means that it is difficult to prevent people from using it without paying. This can lead to situations where people can benefit from the good without contributing to its cost, resulting in the price paid not necessarily reflecting the real value they place on it. This is a common issue with public goods and contributes to the free-rider problem.

When a Good Is Not Easily Excludable, What People Pay