In the Cost-Benefit Analysis of Public Goods,the Benefits

question 119

Multiple Choice

In the cost-benefit analysis of public goods,the benefits

• A)Can be accurately measured using the market price of the public good.
• B)Can be accurately measured by ballot box economics.
• C)Are more easily estimated than the costs.
• D)Can be only roughly estimated using highly subjective techniques.

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Definitions:

Markets

Markets are arenas in which buyers and sellers come together to exchange goods, services, or financial instruments at determined prices.

Equilibrium

A situation in the market where demand matches supply, resulting in steady prices.

Supply Curve

The supply curve is a graphical representation showing the relationship between the price of a good and the amount that suppliers are willing and able to sell in the market.

Decrease

A reduction in quantity, size, or intensity.