Which of the Following Is a Problem Associated with Raising

question 8

Multiple Choice

Which of the following is a problem associated with raising fees from a subsidized level to a level that just covers the cost of service provision?

• A) Reduction of infrastructure sector's net drain on the government budget
• B) The additional revenue can be used to expand the quantity or quality of the service
• C) Reduces the use of services by poorer households where the social cost outweighs the social benefit
• D) May reduce the use to a point where the marginal social benefit of one more unit is greater than the marginal social cost of one more unit.

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