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

Question

Quizplus · Accepted Answer

The government is likely to evaluate the costs and benefits of producing the public good to determine the appropriate quantity to supply. This ensures that the public good is efficiently produced and the benefits outweigh the costs. While public surveys and estimating market demand may be useful, they are not necessarily the best indicators of how much of a public good should be produced. Taking a vote in parliament is a political process that may not necessarily consider economic efficiency or welfare.

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