Multiple choice question: Suppose a high-speed rail system is proposed that will save commuters from the suburbs a lot of valuable time. If the high-speed rail system is built, the value of homes in the suburbs will increase because of the easier commute. When estimating the potential benefits of the high-speed rail system: A. it is important not to double count benefits since the rise in home values is caused by the time savings. B. it is important to count both the rise in home values and the value of time saved by commuters. C. neither the rise in home values nor the value of time saved by commuters is considered a benefit of investing in the high-speed rail system. D. the increased value of suburban homes is considered a cost rather than a benefit.

Multiple choice question: Suppose a high-speed rail system is proposed that will save commuters from the suburbs a lot of valuable time. If the high-speed rail system is built, the value of homes in the suburbs will increase because of the easier commute. When estimating the potential benefits of the high-speed rail system: A. it is important not to double count benefits since the rise in home values is caused by the time savings. B. it is important to count both the rise in home values and the value of time saved by commuters. C. neither the rise in home values nor the value of time saved by commuters is considered a benefit of investing in the high-speed rail system. D. the increased value of suburban homes is considered a cost rather than a benefit.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter2: Economics: Eight Powerful Ideas

Section: Chapter Questions

Problem 19P

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