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.