A government policy maker is trying to decide which of four methods of reducing highway noise in a residential area should be implemented. She is looking at these four options: $$\begin{array} { | c | c | c | }
\hline \text { Plan } & \text { Benefits } & \text { Custs } \
\hline \text { A } & \$ 500,000 & \$ 490,000 \
\hline \text { B } & \$ 550,000 & \$ 530,000 \
\hline \text { C } & \$ 570,000 & \$ 540,000 \
\hline \text { D } & \$ 600,000 & \$ 580,000 \
\hline
\end{array}$$ If she uses the cost/benefit logic of economics, which plan will she propose?
A)Plan A
B)Plan B
C)Plan C
D)Plan D

Question

A government policy maker is trying to decide which of four methods of reducing highway noise in a residential area should be implemented. She is looking at these four options: $$\begin{array} { | c | c | c | } 
\hline \text { Plan } & \text { Benefits } & \text { Custs } \
\hline \text { A } & \$ 500,000 & \$ 490,000 \
\hline \text { B } & \$ 550,000 & \$ 530,000 \
\hline \text { C } & \$ 570,000 & \$ 540,000 \
\hline \text { D } & \$ 600,000 & \$ 580,000 \
\hline
\end{array}$$ If she uses the cost/benefit logic of economics, which plan will she propose?
A)Plan A
B)Plan B
C)Plan C
D)Plan D

Quizplus · Accepted Answer

Plan C has the highest net benefit (benefits minus costs), with a net benefit of $30,000 (\$570,000 - \$540,000), compared to the net benefits of the other plans: Plan A ($10,000), Plan B ($20,000), and Plan D ($20,000).

A Government Policy Maker Is Trying to Decide Which of Four