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. When different groups give us radically different cost/benefit results:
A) we have an example of how cost/benefit analysis does not work as a way of forming policy.
B) the studies may still be useful if we can see the underlying assumptions and estimates of each group.
C) we should realize that sometimes it is best to trust in the political process rather than try to use an economic approach.
D) we should conclude that the best way to decide who is telling the truth is to find which group has the best intentions.

Question

Quizplus · Accepted Answer

The studies may still be useful if we can see the underlying assumptions and estimates of each group, as this can help us understand the different perspectives and factors considered by each group.

A Proposal to Build a Dam on a Wild River