ECONOMICS
COST BENEFIT ANALYSIS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The additional tax paid by an individual resident is greater than the additional benefit of building the bridge for all residents.
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The toll paid by an individual resident crossing the bridge is less than the resident’s benefit from crossing the bridge.
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The total costs of building the bridge are less than the total benefits from building the bridge.
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The total costs of building the bridge are greater than the total benefits from building the bridge.
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Total costs are at a minimum and total benefits are at a maximum.
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Detailed explanation-1: -Understanding Cost-Benefit Analysis The outcome of the analysis will determine whether the project is financially feasible or if the company should pursue another project.
Detailed explanation-2: -Cost-benefit analysis can help identify the most cost-efficient way to achieve a policy goal, or determine whether the benefits of the proposed project outweigh the costs.
Detailed explanation-3: -Which question would a government leader most likely ask when using a cost-benefit analysis to make a decision? How will this decision affect people and society?
Detailed explanation-4: -Build a framework. First, create a framework that lays out the goals of your analysis, your current situation, and the scope of what your analysis will include. List and categorize costs and benefits. Estimate values. Analyze costs vs. Make recommendations. 10-Nov-2022