Before considering any public project, the government should (i)
Compare the total cost and total benefits of the project.
(ii)
Conduct a cost-benefit analysis.
(iii)
Infer that citizens who vote for a project are willing to pay equally for it.
A)(i) only
B)(ii) only
C)(i) and (ii) only
D)(i), (ii), and (iii)

Question

Quizplus · Accepted Answer

Comparing the total cost and total benefits of a project and conducting a cost-benefit analysis are both important steps in making a decision about a public project. However, inferring that citizens who vote for a project are willing to pay equally for it is not necessarily true and does not necessarily provide useful information for making a decision. Therefore, options (i) and (ii) should be chosen but not (iii).

Before Considering Any Public Project, the Government Should (I)