Question

The parliament, the legislature of the fictional country of verben, is considering legislation that will generate benefits of 30 million and costs of 34 million. For perspective, verben's population is 50 million. What is the net impact of the legislation in terms of monetary value?

1) 4 million
2) 30 million
3) -4 million
4) -30 million

Answer 1

The net impact of the legislation in Verben is a negative 4 million, as the legislation costs exceed the benefits by that amount.

Step-by-step explanation:

The net impact of the legislation being considered by the parliament of the fictional country of Verben, when the benefits generated are 30 million and costs are 34 million, would be the difference between the two amounts. To calculate this, you subtract the costs from the benefits:

30 million (benefits) - 34 million (costs) = -4 million

Therefore, the net impact of the legislation in terms of monetary value would be -4 million, which indicates a loss or negative impact of 4 million.