...6 Cost-Benefit Analysis and Government Investments TRUE/FALSE QUESTIONS 1. A cost-effective program mix is one that accomplishes a given mission at minimum cost. 2. Cost-benefit analysis is a technique for determining the net benefits of alternative government projects. F 3. An increase in the profits of gasoline dealers on an improved road is a benefit of the road project. F 4. If increases in agricultural land values are viewed as a benefit of an irrigation project, then the market value of projected increased crops should also be included as a benefit of the project. 5. The social rate of discount must equal the opportunity cost of funds used to finance a project. F 6. If a project has a B/C ratio of 0.9, its approval will result in net benefits to citizens of the nation. F 7. The benefits of widening a road consist only of the cost savings to existing users of the road. 8. If the benefits of a new bridge exceed the costs, then there will be a net social gain from building the bridge. F 9. If the marginal social cost of a new road exceeds its marginal social benefit, then building the road will result in a net social gain. F 10. The higher the social rate of discount, the more government projects for which benefits will exceed costs. T 11. A lower discount rate favors more capital-intensive investments that yield net benefits further into the future. 12. The present value of a stream of net benefits for 20 years will be less than the sum of those benefits unless...
Words: 1564 - Pages: 7
...residents may not want but it will be the very thing that will improve the State's welfare but most importantly its roads. According to the Post and Courier, South Carolina's gas taxes have not been raised since 1987 during the Reagan/Bush administration, leaving the state with some of the most dangerous roads in the nation. If South Carolina raises its gas taxes, the government can begin to improve the unsafe roads in the state that will have a positive outcome for the consumer in the long run. Raising the gas taxes will not only help improve the roads but will also help the state's public transportation association commercially allowing for the economy to grow and fund...
Words: 1273 - Pages: 6
...Roman Roads Of all the developments in ancient Roman engineering, few can rival the importance of Roman roads. Better known in Latin as Viae, these roads spanned up to 53,000 miles. Most importantly, they were instrumental in the expansion and maintenance of the Roman Empire. For centuries, these roads allowed the vast expanse of Roman territories to remain connected to their one patron city, Rome. They were built using ingenious techqniques and maintained carefully by the Romans. The most important roads connected Rome to important Italian cities. From these cities, roads continued to important provinces such as Gaul and Macedonia. Not only did roads have military significances, but also important economic benefits. As a result, much of Rome’s prosperity and success was a direct result of Roman roads. Roman Viae were subdivided into privatae or agrariae and publicae. Privatae were free roads with the soil remaining private property. They were managed by private individuals. Agrariae and publicae were public roads. Their use, maintenance, and soil were all managed as property of the state. The need for such roads was first realized after the Samnite Wars. With Roman troops now beginning to venture farther away from Rome, roads were necessary to connect the legions to the city. Along the roads, milestones were used to mark the distance from Rome. Some scholars believe the particular point from which the distance was marked was the gate from which the road...
Words: 1594 - Pages: 7
...travelers make an effort to minimize their losses and maximize their benefits. It is also placed in a situation in which neither traveler gives any concerns about the other but still acknowledge one another. Therefore, the fundamental nature of the traveler’s dilemma is to reach an equilibrium in which each traveler is able to gain an equal amount of benefits and losses. 2 Describe the opportunity cost of the choices made by the traveler. An opportunity cost is the measure of a cost in a missed opportunity. In a variety of different dilemmas, there is generally an infinite amount of choices to be made. In the traveler’s dilemma, he or she has the opportunity of submitting a certain amount in order to maximize their gains and minimize their losses. By only speaking in terms of opportunity costs in a traveler’s dilemma, it is very difficult to accurately determine the rational choices a traveler may decide on. He or she will only decide on the opportunities that will maximize their benefits and minimize their losses. Therefore, by following these rules, the benefits and losses of an opportunity will change, thus the Nash equilibrium will as well. 3 Frost entitled his poem “The Road Not Taken.” Why isn’t it entitled “The Road I Took”? Although there are multiple references in the poem that come from a first-person perspective, Robert Frost still entitled his poem “The Road Not Taken” rather than “The Road I Took”. I believe that Frost is describing the overall experience...
Words: 364 - Pages: 2
...In a basic principle of efficient road user charging the user must be charged for all the additional costs, because they imposed by their used of the road system. Marginal external cost is an additional cost while marginal social cost are cost its borne directly by the user. This principle that all costs are valued at the compensation that needed to those willing to do. They have two main constraints in the development of road user charging the technical and economic. Charging has two form the Fuel duty and Vehicle excise duty. Efficient prices (MSC- MARGINAL SOCIAL COST CONCEPT). Have two concepts: SHORT RUN which pricing translates into, in terms of road pricing, is a need to measure three components of cost. The first is the cost imposed...
Words: 1748 - Pages: 7
...Unit 2 Research Paper 1: Experiment Experiment: Drive time in traffic 1. Problem: How can I save time in rush hour traffic in Dallas, TX? 2. Solution: Using Toll Roads or Public transportation. 3. Course of Action: What is the cost variable for the options, Does it truly save time (is it efficient and practical) 4. Steps: • Is it simple and more reliable by car? • What is the average gas price vs price to ride public transportation? • Does it truly save money either way? • Which way is faster? • http://wikitravel.org/en/Dallas Daily individuals try to find ways to save drive time in rush hour traffic. We tried all types of things leave earlier but you lose family time, sleep or do other things to rearrange our daily life schedule. Well the cost option is for riding on the toll roads in gas, paying tolls or public transportation, what is the cost effective. I think the study would show that riding toll roads if the way to go. I say this because even if you ride public transportation it’s not available in every location, so you may still be in some type of traffic getting to your pick up location. Another reason I say toll roads is your can control the routes you go verses public transportation there may not be a direct route. You may have to do transfer from one stop to another and public transportation is only available doing certain hours. The cost may be cheaper for public transportation but, it is still possible you are putting wear and tear on your vehicle...
Words: 547 - Pages: 3
...Wales and Queensland. This route is planned to use existing interstate lines and a combination of new and upgraded tracks via Parkes, Moree, Toowoomba and Calvert (ARTC, 2017). Whether to run passengers on the railway will be a decision for each State Government (ARTC, 2017). Cost and Benefits Table Costs Benefits It will cost 114 billion dollars to build the inland railway. This is a cost because the great amount of money could be spent and other things such as roads and schools....
Words: 936 - Pages: 4
...1.0 Significant of Study This study is significant on discussing about how freight transport would bring to critical environmental issue to the society. 2.0 Problem Statement Freight transport has been identified that are causing three major problems, which are stated as below, (1) Increases of the road freight transport increase environmental issues along, (2) Some controversy relationship issue between transport growth and economic development, environmental and political factors, (3) Emission rise of Nitrogen Oxides (NOx), Hydrocarbons (HC), Carbon Monoxide (CO), and Carbon Dioxide (CO²) worsen the greenhouse effect. 2.1 Road freight transport and environmental issues. The freight transport in Europe by road, rail and waterway together has grown by about 60 per cent since 1970; especially road transport has more than doubled, while rail and waterway still remained static. In this case, there is involving an increasing number of road freight traffic that could cause towards the increasing of environmental problem. For a case in point, when heavy goods vehicles are being used to transfer goods from a point of origin to another destination, it could be leaking out pollutant material and energy emission that would be harmful to humans as well as flora and fauna. 2.2 Controversy relationship issue The relationships between transport growth and economic development are significantly different from those linking the economy to the energy sector generally. The energy...
Words: 6771 - Pages: 28
...Political 18 7.0. ONLINE DISCUSSION FORUM REVIEW 19 8.0. CONCLUSIONS AND INFORMED POSITION 20 Conclusions 20 Informed Position 20 ACKNOWLEDGMENTS 21 REFERENCES 22 ABSTRACT The Brisbane City Council is embarking on the project of completing the staged upgrade of Kingsford Smith Drive to decrease traffic congestion and advance safety on the busy road. The Kingsford Smith Drive is a major lane connecting Brisbane CBD to the Brisbane Airport, Port of Brisbane, North-shore Hamilton, and the Australia Trade Coast area. The road was called after the aeronaut Charles Kingsford Smith. It links the suburb of Pinkenba to the Brisbane central business district at the Breakfast Creek. The Roadis categorized as a primary freight route. The demand for transportation of freight on Kingsford Smith Drive is anticipated to grow promptly. Construction of the phase one of the projects that widened a portion of Kingsford Smith Drive from four to six lanes was accomplished in mid-2011. However, the community preferred for the remainder of the project to involve broadening Kingsford Smith Drive to six lanes amid Theodore Street and Breakfast Creek Road, and creating out into the Brisbane River between Riverview Walkway and Breakfast Creek Road.This Planning was to continue throughout 2014. According to statistics, Kingsford Smith Drive is one of the eventful...
Words: 4730 - Pages: 19
...country roads which go through cities and villages. Construction is performed in three stages: In 2010 the first construction stage with a length of 23.5 km from Eibesbrunn to Schrick was opened to traffic. The second stage from Schrick to Poysbrunn with a length of 25 km is supposed to be constructed till 2017 and the last stage from Poysbrunn to Drasenhofen with a length of 9 km should be finished in 2018. From Drasenhofen, the Austrian boarder travellers can use the Czech highway to Brno, so there will be a continuous highway between Vienna and Brno. The construction and maintenance of the highway is financed through Public Private Partnership by the Bonaventura Straßeneinrichtungs-GmbH Problem statement: The objective of a new highway is to improve the travel conditions and improve the quality of life for the people who are living close to the old road and suffer from noise, thus these benefits exceeds the costs of constructing and operating a highway? For answering this question an economic evaluation has to be done. Theoretical and methodological considerations An in Medias res Cost Benefit Analysis (CBA) where all relevant economic environmental and social impacts are included, is performed for the highway case. A CBA as an economic evaluation method was preferred over a Cost-Utility analysis (CUA) and Cost effectiveness analysis (CEA) because at the CUA the benefits are measured in different units for example in quality adjusted life years and at the CEA benefits are measure...
Words: 2443 - Pages: 10
...state budget and other issues. She’s a Republican who has been in office for 4 years and is in the Michigan Republican Women's organization and the American Business Women's Organization. Some of her committee assignments include making a regulatory and education reform. Regarding her votes, initiatives and takes on issues she has recently voted “no” to income tax rollback and no-fault insurance but “yes” to improving Michigan roads, other post-employment benefits (OPEB) and having coding as a language option in school....
Words: 503 - Pages: 3
...COVER PAGE The inevitable changes among vehicular modal share in the Transport system thirty years from now Phumelela Kubheka, 200675320 This Assignment is submitted in partial fulfilment of the requirements of the Bachelor of Technology Degree in Transportation Management In the Department of Transport and Supply Chain Management Faculty of Management At the University of Johannesburg 03 April 2014 Table of contents 1.1 Introduction …………………………………………....3 2. Transport issues …………………………………….….5 2.1 Amount of travel ……………………………………....5 2.2 Purpose of travel ……………………………………...6 2.3 Public Transport accessibility ………………………..7 2.4 Affordability …………………………………………....8 2.5 Accessibility to shopping complexes, and medical facilities …………………………….…...10 3. The Bicycle modal share ………………………………11 4. Conclusion………………………………………………14 5. References………………………………………………15 Introduction It is important to remember that transport should be made accessible and affordable to people of all income groups. Poverty is seen as a relative concept, and the view is taken that we should not be considering one South African poverty problem, but rather strategies for developing the metropolitan, urban and rural poor households. The households have been further grouped into quintiles according to their incomes. In my quest to answer how likely trends are going to change, I will give an analysis of a broad range of...
Words: 2885 - Pages: 12
...every aspect of the drive. AVs have the potential to alter the landscape of driving like it has never been altered before. They have the potential to reduce the number of deadly crashes, provide transportation to elderly and disabled people and provide more capacity on the road. This paper will address the overall safety benefit of these vehicles. The first section will provide details into the technology behind the AV. This technology is the main component of the AV and will provide the safety factors in the system. The technology is currently in some cars and will advance to cover more systems as the AV becomes more accepted. The second section will cover the safety of the vehicle. It will delve into the number of accidents currently happening with human drivers to the tests of AVs. It will also bring up different factors which cause human accidents which are not present in a computer. Finally the third section will cover the health benefits of AVs. Stress is a major cause of most medical conditions. Driving in some instances cause major stress. So if a computer is driving the car then that should lessen the overall stress. This section will explore this benefit. Technology of Autonomous Vehicles The development of autonomous vehicles is in high demand. Many universities and private companies are leading the way in this development. “Self-driving cars rely on...
Words: 1726 - Pages: 7
...be well equipped before the winter season occurs. By pre-treating roads/sidewalks with salt before snow accumulation happens, the safeness of students on campus, and the staff and commuters off campus will be able to get to the university safer manner. Currently at Wheeling Jesuit University snow removal is not taken care of in the best possible way. Employees in charge of removing snow from roads and sidewalks are not well prepared, as if they do not know it was going to snow. On campus, the roads are fully covered with the snow, and the snow is left on the road being packed down as some may walk or drive over the snow. For example, the article No-stick surface says, “the bond between the ice and the pavement is strong, removal by plowing alone may not be effective” (Tuan, Yahia 26). If the roads and...
Words: 1617 - Pages: 7
...How does a public good differ from a quasi-public good? In your answer give an example of each type of good and why you believe it to be either a public or quasi-public good. A public good is a good that is provided to all members of a community without profit by the government and/or a private organisation, for example clean air is a public good as it can be accessed by all and is not restricted. A Quasi-Public good is a near-public good that is provided to the public but can also be restricted such as roads as they are a public good that could be restricted by adding a toll. 5. Using a supply-demand diagram, demonstrate how a positive consumption externality, vaccination, leads to market inefficiency. Using a supply-demand diagram, demonstrate how a negative supply consumption externality, pollution, leads to market inefficiency. Make sure you describe the diagram in words as...
Words: 1100 - Pages: 5
