In a public goods context, it is difficult to measure their impact on real income because
A)people do not reveal how they value public goods.
B)public goods are generally free to the public.
C)they make up a small percentage of total GDP.
D)inflation decreases the value of the good.

Question

Quizplus · Accepted Answer

Public goods are non-excludable and non-rivalrous, meaning individuals do not have to pay for them directly, leading to a lack of revealed preferences and making it difficult to measure their true value to individuals and their impact on real income.

In a Public Goods Context, It Is Difficult to Measure