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.
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