If the construction of a new roadway would create $10 billion worth of benefits for citizens and would cost $8 billion to construct, then using the criterion of economic efficiency, the roadway

Question

Quizplus · Accepted Answer

According to the criterion of economic efficiency, if the benefits of a project outweigh the costs, then it is considered efficient and should be undertaken. In this case, the benefits of the roadway are $10 billion, which is greater than the cost of construction, $8 billion, so it is economically efficient to build the roadway. Therefore, the roadway should be built.

If the Construction of a New Roadway Would Create $10