Question

The governor has proposed to clean up all the trash on the side of the highway. The project is estimated to cost the tax payers and additional$15,000. The city will benefit by having a clean highway which will entice tourists to stop along their routes. The project is estimated to bring in$12,000 of revenue from the highway being cleaned. Should the governor continue with the project?

A. Yes, the project will have $12,000 of benefits to the city folks.
B. No, the project will not bring in enough benefit to cover the costs.
C. Yes, the tax payers wanted the highway cleaned up.
D. No, the benefit from the project will only be $3000.

Answer 1

Answer: The governor should not continue with the project because it will not bring in enough benefit to cover the costs.

Here, the project is estimated to cost the tax payers and additional $15,000. The city will benefit by having a clean highway which will entice tourists to stop along their routes. The project is estimated to bring in$12,000 of revenue from the highway being cleaned.

Although the project is in goodwill but it won't generate enough revenue and thus shouldn't be continued with.