Consider four possible benefits of a water resources project:
I.Provides employment to construction workers currently building houses.
II.Provides electric power to the market.
III.Provides reduced flood risk to individuals living along the river.
IV.Raises the profits of MacDonald's stands in the area which serves construction workers.
According to the opportunity cost notion of cost?benefit analysis,which of these are true benefits?

Question

Consider four possible benefits of a water resources project: 
I.Provides employment to construction workers currently building houses.
II.Provides electric power to the market.
III.Provides reduced flood risk to individuals living along the river.
IV.Raises the profits of MacDonald's stands in the area which serves construction workers.
According to the opportunity cost notion of cost?benefit analysis,which of these are true benefits?

Quizplus · Accepted Answer

According to opportunity cost in cost-benefit analysis, true benefits are those that provide value beyond what would have occurred without the project. Providing electric power (II) and reducing flood risk (III) are direct benefits of the project. Employment (I) and increased profits for MacDonald's (IV) are not true benefits as they could occur without the project or are indirect.

Consider Four Possible Benefits of a Water Resources Project