Economic Justification: Review

1. Which three elements are used to determine if the cost of a Betterment is justified (choose one).

Cost of the betterment / Overall reduction in maintenance costs / Cost of future repairs
Best value / Overall improvement of safety / Cost of future repairs
Quality of the Betterment plan / Risk of eligible recurring damage / Cost of future repairs
Number and frequency of past events / Economic impacts of current damage / Overall cost savings
Cost of the Betterment / Risk of eligible recurring damage / Cost of future repairs
CPI adjusted cost of past damage / Cost of the Betterment / CPI adjusted cost of future repairs

2. Choose the item which shows the formula for determining a Betterment cost:

Total cost of repair without the Betterment - Total cost of repair including the Betterment
Total cost of repair including the Betterment - Total cost of repair without the Betterment
Total cost of repair including the Betterment - Total cost of repair without the Betterment adjusted for anticipated inflation at the estimated date of construction
Total cost of repair including the Betterment + Total cost of repair without the Betterment

3. True or False: Economic impacts and user costs can be used to economically justify Betterments for ER funding.

True
False

4. True or False: Projecting damage to occur frequently (2 to 5-years) is a good way to justify the additional cost of a Betterment.

True
False

5. True or False: Traffic control during construction is not included when estimating the cost of a Betterment.

True
False

Check your answers

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