Question

The governor has proposed to clean up all the trash on the side of the highway. The project is estimated to cost the tax payers and additional $15,000. The city will benefit by having a clean highway which will entice tourists to stop along their routes. The project is estimated to bring in $12,000 of revenue from the highway being cleaned. Should the governor continue with the project?

Multiple Choice

• a. Yes, the tax payers wanted the highway cleaned up.

• b. Yes, the project will have $12,000 of benefits to the city folks.

• c. No, the project will not bring in enough benefit to cover the costs.

• d. No, the benefit from the project will only be $3000.

Answer 1

Answer

Option c

c. No, the project will not bring in enough benefit to cover the costs.

The benefit is less than the costs for the project so the project should not be considered.

as $12000<$15000.