Which Statement Is TRUE

question 198

Multiple Choice

Which statement is TRUE?

• A)It is possible to observe how much people benefit from consuming an additional unit of a public good.
• B)It is difficult to get an accurate estimate of the marginal social benefits of public goods because individuals have an incentive to distort the truth about their willingness to pay.
• C)Individuals tend to underestimate the amount of a public good that they desire.
• D)It is straightforward to estimate the marginal social benefits of public goods.

---

Definitions:

Current Price

Refers to the present market value of a product, security, or commodity.

Net Operating Income

This represents the profit a company generates from its core business operations, excluding expenses from interest and taxes.

Price Reduction

A decrease in the selling price of goods or services, often used as a strategy to increase demand or sales volume.

Sales Forecast

An estimate of the amount of goods or services a company expects to sell in a future period.