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When Choosing the Right Amount of a Public Good to Supply

Question 73

Multiple Choice

When choosing the right amount of a public good to supply, the government often:


A) guesses, because people have an incentive to overstate a good's value.
B) provides too much, because people have an incentive to understate a good's value.
C) provides too little, because people have an incentive to overstate a good's value.
D) fails to provide it, because people have an incentive to understate a good's value.

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