How do policy makers evaluate the investment in a new community level asset?
A) When there is significant demand
B) When the average income in the community is below the poverty line
C) When the social benefits outweigh the social costs
D) When the costs outweigh the benefits for a private firm

Question

Quizplus · Accepted Answer

Policy makers should evaluate the investment in a new community level asset based on whether the social benefits outweigh the social costs. This takes into consideration the potential positive impact on the community as a whole, rather than just the financial costs and benefits for a private firm. It is important to consider factors such as accessibility, availability, and affordability for all members of the community. Additionally, investments in community level assets can help to address issues of inequality and poverty, which may be particularly relevant in communities with lower average incomes or a greater need for social services. However, evaluating demand alone is not sufficient, as it may not reflect the broader social impact of the investment.

How Do Policy Makers Evaluate the Investment in a New