Suppose That a Public Project (For Example, a Golf Course)

question 6

Essay

Suppose that a public project (for example, a golf course) is funded out of general tax revenues. The proportion of the population benefiting from the project is split into a high-income group and a low-income group, and 75% of the benefits go to the high-income group. How does this information affect a benefit-cost analysis?

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Definitions:

Federal Government

The national level of government organization, having authority over broader issues that cross state lines, such as defense, foreign policy, and monetary policy.

Department of Justice

A federal executive department of the U.S. government responsible for the enforcement of the law and administration of justice.

Proposed Mergers

Plans or considerations for two or more companies to combine their operations, resources, or identities to achieve strategic objectives.

Industry

A segment of the economy involving the production and sale of a certain set of goods or services.