Question

Which statement is TRUE?

- Individuals tend to underestimate the amount of a public good that they desire.
- It is possible to observe how much people benefit from consuming an additional unit of a public good.
- It is straightforward to estimate the marginal social benefits of public goods.
- It is difficult to get an accurate estimate of the marginal social benefits of public goods because individuals have an incentive to distort the truth about their willingness to pay.

Answer 1

It is difficult to get an accurate estimate of the marginal social benefits of public goods because individuals have an incentive to distort the truth about their willingness to pay

Step-by-step explanation: