Simply Asking People How Much They Value a Highway Is

question 227

Multiple Choice

Simply asking people how much they value a highway is not a reliable way of measuring the benefits and costs because

• A)those who stand to gain have an incentive to tell the truth.
• B)those who stand to lose have an incentive to exaggerate their true costs.
• C)answers to the survey questions will always be downwardly biased.
• D)not everyone asked will be using the highway.

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Definitions:

Budget Line

A graphical representation of all possible combinations of two goods that can be purchased with a given budget at specified prices.

Price of Clothing

The monetary value assigned to garments and textiles, determined by various factors including production costs, brand, and market demand.

Price of Food

The cost assigned to food products, which can vary based on factors such as region, availability, and demand.

Utility Maximizing

The economic principle where individuals or entities make choices to get the highest level of satisfaction from their resources.