The Precedence Diagram Method (PDM) of Constructing a Project Network

question 76

Multiple Choice

The precedence diagram method (PDM) of constructing a project network diagram uses boxes to represent activities (nodes) and lines with arrows to represent the ________.

• A) dependencies
• B) sequences
• C) tasks
• D) estimates

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Definitions:

Externality

An externality is a cost or benefit caused by a producer that is not financially incurred or received by that producer.

Market Exchange

The process through which goods, services, or assets are traded between buyers and sellers at a determined price.

Negative Externalities

Unintended and unfavourable outcomes of an activity or transaction that affect third-party stakeholders who did not choose to be involved in that activity.

Positive Externalities

Benefits experienced by a third party not directly involved in the production or consumption of a good or service.