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The Three Problems Facing a Government Trying to Determine the Optimal

Question 27

Multiple Choice

The three problems facing a government trying to determine the optimal quantity of a public good include all of the following EXCEPT:


A) preference revelation because individuals may not tell the government their true valuation of the public good.
B) preference knowledge because individuals may not know their true valuation of the public good.
C) preference implementation because it is hard to produce public goods in practice.
D) preference aggregation because it is difficult to add up the preferences of millions of citizens.

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