Why is it challenging for governments to accurately measure benefits when using cost-benefit analysis to decide on providing a public good?

Show Answers

Because public goods offer no advantages to society since they cannot exclude anyone.Because the benefits are limitless since public goods are non-rivalrous and can be consumed by countless individuals simultaneously.Because it is impossible to assign value to human life or environmental factors.Because survey participants often lack motivation to provide honest responses.

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.