Reference no: EM133233992

The following statements are true or false? If it is false, indicate the true statement.

1. Willingness to accept is the maximum amount that a buyer is willing to pay to buy a product.
2. Willingness to pay is the minimum amount that a seller is willing to accept to sell a product.
3. A net social benefit function or distributive weights function is the sum of net benefits experienced by individuals or groups in the relevant society.
4. In the majority voting system, a project is chosen if the majority of voters are in favour of doing this project
5. In reality, CBA should be done based on Scitovsky's reversal test
6. If market is producing at equilibrium point, market is allocatively efficient and hence, total economic benefits or total welfare is not maximized.