Which of the Following Statements Is True

question 3

Multiple Choice

Which of the following statements 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.

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Definitions:

Combining Form

A term used in the construction of medical and scientific terminology, indicating the combination of root words to form new meanings.

Suffix

A letter or group of letters added at the end of a word to form a new word, often to indicate a type of word like a noun or adjective.

Consonant

A class of speech sounds made by closing or partly closing the air passageway.

Initialism

An abbreviation consisting of initial letters pronounced separately, such as FBI for Federal Bureau of Investigation.