Benefit Cost Ratio

Question 1

is a systematic method of assessing the desirability of government projects or policies when it is important to take a long-term view of future effects and a broad view of possible side effect

Answer 1

Benefit-Cost Analysis

Question 2

defined as the favorable consequences of the project to the public

Answer 2

Project Benefit

Question 3

represent the monetary disbursement(s) required of the government

Answer 3

Project costs

Question 4

generally used to represent the negative consequences of a project to the public

Answer 4

Disbenefits

Question 5

is applied to a governmental project that is expected to earn direct revenue sufficient to repay its cost in a specified period of time

Answer 5

Self-liquidating project

Question 6

Examples of Self Liquidating Projects

Answer 6

Most of these projects
provide utility services—for example, the fresh
water, electric power, irrigation water, and
sewage disposal provided by a hydroelectric
dam

Question 7

If B/C ratio > 1

Answer 7

Conditionally accept
the alternative

Question 8

If B/C ratio < 1

Answer 8

conditionally reject the
alternative

Question 9

If B/C ratio close to 1

Answer 9

then intangible
factors may sway the decision to accept or
reject
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