Cost-Benefit Analysts Often Encounter the Problem That Those Who Would

question 119

Multiple Choice

Cost-benefit analysts often encounter the problem that those who would benefit from government provision of a public good tend to

• A)overstate the benefit they would receive from the public good and those who would be harmed by government provision of a public good tend to overstate the costs they would incur from the public good.
• B)overstate the benefit they would receive from the public good and those who would be harmed by government provision of a public good tend to understate the costs they would incur from the public good.
• C)understate the benefit they would receive from the public good and those who would be harmed by government provision of a public good tend to overstate the costs they would incur from the public good.
• D)understate the benefit they would receive from the public good and those who would be harmed by government provision of a public good tend to understate the costs they would incur from the public good.

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Definitions:

Self-Awareness

Being aware of one's personal attributes, sentiments, driving forces, and objectives.

Affective Forecasting

The process by which individuals predict their future emotional states or how they will feel in response to future events.

Ego Depletion

The theory that self-control or willpower draws upon a limited pool of mental resources that can be used up.

Physical Arousal

Pertains to the physiological responses of the body that prepare an individual for action, often associated with emotions, exercise, or sexual interest.