Consider Four Possible Benefits of a Water Resources Project

question 20

Multiple Choice

Consider four possible benefits of a water resources project:
I.Provides employment to construction workers currently building houses.
II.Provides electric power to the market.
III.Provides reduced flood risk to individuals living along the river.
IV.Raises the profits of MacDonald's stands in the area that serve construction workers.
According to the opportunity cost notion of cost-benefit analysis,which of these are true benefits?

• A) All of them.
• B) I, II, and III, but not IV.
• C) I and III, but not II and IV.
• D) II and III, but not I and IV.

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