Why It Is Difficult to Use Cost-Benefit Surveys to Evaluate

question 160

Multiple Choice

Why it is difficult to use cost-benefit surveys to evaluate government projects

• A)Respondents to cost-benefit surveys are unable to evaluate the effect of the project on their personal satisfaction.
• B)Respondents to cost-benefit surveys are typically not benefited directly by government projects.
• C)Respondents to cost-benefit surveys have a difficult time identifying explicit costs.
• D)Respondents to cost-benefit surveys have little incentive to tell the truth.

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Definitions:

Contra-asset

A contra-asset account is a type of asset account where its balance is a negative figure that offsets the balance of its corresponding asset account.

Liability

A financial obligation or debt owed by a company to another entity, which is expected to be settled through the transfer of assets or services.

Inventory

Consists of all the goods a company has in stock that are ready to be sold, including raw materials, work-in-progress, and finished goods.

Expense

A cost or charge that a company incurs through its operations aimed at generating revenue.