Question

If the construction of a high speed rail project creates benefits of $20 billion while the cost is $45 billion, this indicates the project a. should be undertaken if it is favored by a majority of voters. b. will increase the welfare of society. c. should be undertaken even if it is opposed by a majority of voters. d. should not be undertaken.

Answer 1

This indicates the project should not be undertaken.

Step-by-step explanation:

As we can see from the cost estimation, that the profit is very less than that of the cost. And before evaluating any project we first check it benefit cost ratio. Which is an important factor to judge or to check whether the project is profitable or not. Even though it might help the public but on the other hand that loss will be unbearable. That money could be used for that public on certain other ways. Or can be used for the maintenance of the previously available rail lines