you have been assigned the task of determining the route of anew highway through

Question

you have been assigned the task of determining the route of anew highway through an older section of town. the highwaywill rquire that many older homes must be either relocated or torndown. twopossible criteria that might be used in decidingwhere to relocate the highwayare: (a) ensure that there are benefits to those who gain from thedecision and that no one is harmed by the decision. (b) ensure that the benefits to those who gain from thedecision are greater than the losses of those who are harmed by thedecision. which criterion would you select to use in determining theroute of the highway. explain you have been assigned the task of determining the route of anew highway through an older section of town. the highwaywill rquire that many older homes must be either relocated or torndown. twopossible criteria that might be used in decidingwhere to relocate the highwayare: (a) ensure that there are benefits to those who gain from thedecision and that no one is harmed by the decision. (b) ensure that the benefits to those who gain from thedecision are greater than the losses of those who are harmed by thedecision. which criterion would you select to use in determining theroute of the highway. explain

Explanation / Answer

Economics does not differentiate between people in situations likethis. It's a good idea if the benefits of those who gain from thedecision are greater than the losses of those who are harmed by thedecision. In this situation, you can't make a decision that doesnot impose a cost on someone... so if you follow that plan then youwill not relocate the highway. You would therefore want to go withcriterion b because the overall utility in society will be higherthan it was before.

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