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- Subject
- Public Goodseconomics-mcqs › public-goods
- Published
- 1 Jun 2019
- Last updated
- 28 May 2026
Why is it challenging for governments to accurately measure benefits when using cost-benefit analysis to decide on providing a public good?
Multiple choice question for Public Goods. Select an option, then review the explanation below.
Explanation
Measuring the benefits of public goods is difficult primarily because individuals responding to surveys or questionnaires may not have sufficient incentive to answer truthfully, which can distort the assessment of benefits.
More Public Goods MCQs
Practice related questions from the same subject.
- 1.What term describes a good from which individuals can be prevented from accessing or using it?
- 2.Which of the following best illustrates a common resource?
- 3.Which type of good is impacted by a negative externality in a way that reduces market efficiency?
- 4.Which type of good does a positive externality influence market efficiency similarly to?
- 5.Who is described as a free rider in economic terms?