A proposal to build a dam on a wild river may look like a good idea from the cost/benefit study done by the Army Corps of Engineers, but an analysis done by the Sierra Club might suggest that the dam would be a complete waste of money. Differences in cost/benefit studies such as this are expected because:
A) at least one side is definitely making mistakes in the analysis.
B) at least one side is trying to deceive the public.
C) cost/benefit studies describe what people want to happen, not what will actually happen.
D) items that do not have market prices, such as the environment, are very difficult to value objectively.

Question

Quizplus · Accepted Answer

The environment and other non-market items are difficult to value objectively, leading to differences in cost/benefit analyses.

A Proposal to Build a Dam on a Wild River