If the Formation of Lindahl Prices to Support an Efficient

question 17

True/False

If the formation of Lindahl prices to support an efficient level of public goods is derived from individuals' reporting their marginal willingness to pay, people will under-report their true willingness to pay.

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Definitions:

Observational Learning

A learning process where individuals change their behaviors or acquire new information by watching the actions of others.

Classical Conditioning

The learning method that occurs through repeated pairings of two stimuli, resulting in a response that at first is triggered by the second stimulus but in time is triggered by the first stimulus.

Operant Conditioning

The act of learning in which the intensity of a behavior is transformed by the application of rewards or punishments.

Instrumental Learning

Also known as operant conditioning, it is a learning process through which the strength of a behavior is modified by reinforcement or punishment.