Suppose a High-Speed Rail System Is Proposed That Will Save

question 7

Multiple Choice

Suppose a high-speed rail system is proposed that will save commuters from the suburbs a lot of valuable time.If the high-speed rail system is built,the value of homes in the suburbs will increase because of the easier commute.When estimating the potential benefits of the high-speed rail system:

• A) it is important not to double count benefits since the rise in home values is caused by the time savings.
• B) it is important to count both the rise in home values and the value of time saved by commuters.
• C) neither the rise in home values nor the value of time saved by commuters is considered a benefit of investing in the high-speed rail system.
• D) the increased value of suburban homes is considered a cost rather than a benefit.

---

Definitions:

Net Fixed Assets

The value of a company's property, plant, and equipment minus any accumulated depreciation, representing the actual value of the company's fixed assets.

Sales Increase

A rise in the volume or value of goods and services sold by a business over a given period.

Total Fixed Assets

The combined value of all long-term physical assets owned by a company, which are used in the production or supply of goods and services.

Operating Capacity

The maximum output that a company can produce and sell with the current resources and technology.