Question

Why is simply asking people how much they value a highway not a reliable way of measuring the benefits and costs: 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 relating to cost will always be downwardly biased. D) Not everyone asked will be using the highway.

Answer 1

The correct answer is D. Not everyone asked will be using the highway.

Step-by-step explanation:

Asking people how much they value a highway is not a reliable way of measuring the benefits and costs of the highway because not everyone asked will be using the highway. This means that their answers will not accurately reflect the benefits and costs of the highway to society as a whole. For example, a person who does not use the highway may still benefit from it indirectly, such as through reduced traffic congestion or improved access to markets. However, if they are not asked about the value of the highway, their benefits will not be included in the measurement. Therefore, simply asking people how much they value a highway is not a reliable way of measuring the benefits and costs.