The Greatest Difficulty with Cost-Benefit Analysis of a Public Project

question 250

Multiple Choice

The greatest difficulty with cost-benefit analysis of a public project is determining

• A)whether government revenue is sufficient to cover the cost of the project.
• B)which contractor should be awarded the project.
• C)the cost of the project.
• D)the value or benefit of the project.

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Definitions:

Trade

The action of buying, selling, or exchanging goods and services between people, firms, or countries.

Government Revenue

The income received by the government from various sources, including taxes, fees, fines, and the sale of goods and services.

Tariff

A tax imposed by a government on imported goods or services to protect domestic industries or to generate revenue.

Producer Surplus

The difference between what producers are willing to sell a good for and the price they actually receive.