A Cost-Benefit Analysis of a Highway Is Difficult to Conduct

question 82

Multiple Choice

A cost-benefit analysis of a highway is difficult to conduct because analysts

• A)cannot estimate the explicit cost of a project that has not been completed.
• B)are unlikely to have access to costs on similar projects.
• C)are not able to consider the opportunity cost of resources.
• D)will have difficulty estimating the value of the highway.

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Definitions:

Large Number

A term often used in mathematics and computing to describe a value that is significantly larger than most values considered in a given context.

Product Specifications

Detailed descriptions of a product’s requirements, dimensions, materials, and performance criteria, used as standards for production and quality assurance.

JIT Environment

A production strategy that strives to improve a business's return on investment by reducing in-process inventory and associated carrying costs, through just-in-time inventory management.

Layout Tactic

A specific plan or method employed to arrange physical resources in a production or service facility.