In a Certain City, the Government Is Considering Acquiring Some

question 368

Multiple Choice

In a certain city, the government is considering acquiring some land and turning it into a park (without any fences or gates) . In an attempt to determine the extent to which residents of the city would value the park, residents are asked to fill out a questionnaire. Which of the following is correct?

• A)On the questionnaire, some residents are likely to exaggerate the value they associate with the park.
• B)On the questionnaire, some residents are likely to exaggerate the costs they associate with the park.
• C)The use of such a questionnaire in cost-benefit analysis is likely to produce only rough approximations of residents' perceptions of the costs and benefits of a park.
• D)All of the above are correct.