A Research Study Estimates That the Direct Cost of Constructing

question 32

Multiple Choice

A research study estimates that the direct cost of constructing a bridge connecting two boroughs in a city is $10 million.The revenue from the tolls on the bridge is estimated to be $8 million.The dollar value of pollution from the construction is estimated to be $5 million but the dollar value of the benefit to the city's residents is calculated to be $20 million.The construction of the bridge is most likely to be undertaken by:

• A)the government because the total benefits exceed total costs.
• B)a private firm because the total benefits exceed total costs.
• C)the government because revenues exceed costs.
• D)a private firm because revenues exceed direct costs.
• E)a private firm because the revenues exceed indirect costs.

---

Definitions:

Eye Contact

The act of looking directly into someone's eyes, which is an essential aspect of non-verbal communication.

Superior

Signifies something of higher quality or greater importance than other similar items or people.

Ballpark Figure

An estimate of what a number should be.

Kick-Off

The start or beginning of an event, project, or activity.