A Proposal to Build a Dam on a Wild River

question 88

Multiple Choice

A proposal to build a dam on a wild river may look like a good idea from the cost/benefit study done by the Army Corps of Engineers, but an analysis done by the Sierra Club might suggest that the dam would be a complete waste of money. Differences in cost/benefit studies such as this are expected because:

• A) at least one side is definitely making mistakes in the analysis.
• B) at least one side is trying to deceive the public.
• C) cost/benefit studies describe what people want to happen, not what will actually happen.
• D) items that do not have market prices, such as the environment, are very difficult to value objectively.