A town engineer comes to the city council with a proposal to install a traffic light at a certain intersection that currently has a stop sign. The benefit of the traffic light is increased safety because the light will reduce the incidence of fatal traffic accidents by 50 percent per year. Which of the following statements is correct?
A)The city council should vote to install the traffic light because the benefits will outweigh the costs.
B)The city council should carefully evaluate the benefits of reduced fatalities against only the explicit costs of the light.
C)The city council should carefully evaluate the benefits of reduced fatalities against the costs of the light and of the extra time that drivers will spend waiting for a green light.
D)The costs will invariably outweigh the benefits.

Question

Quizplus · Accepted Answer

The city council should consider both the explicit costs of installing the traffic light and the implicit costs, such as the additional time drivers will spend waiting, to make a well-rounded decision.

A Town Engineer Comes to the City Council with a Proposal