Assuming a full-employment economy, which of the following should not be included as a benefit of a government project to build a new highway when doing a cost-benefit analysis?

Question

Quizplus · Accepted Answer

In a full-employment economy, the income of construction workers and the increase in retail sales at sites bordering the highway would not be considered as benefits in a cost-benefit analysis, as the construction jobs and increased sales would have occurred regardless. Therefore, only the value of time saved on trips would be a true benefit of the project.

Assuming a Full-Employment Economy, Which of the Following Should Not