Which concept, first proposed by Jules Dupuit and initially used for federal waterway infrastructure, provides a basis for comparing projects or policies?

Which concept, first proposed by Jules Dupuit and initially used for federal waterway infrastructure, provides a basis for comparing projects or policies?

• A. Net present value analysis
• B. Risk assessment
• C. Cost-benefit analysis
• D. Feasibility study

Answer: (C)

Cost-benefit analysis compares the total expected costs and benefits of options to determine which yields the greatest net benefit to society. Jules Dupuit, a 19th‑century economist, first proposed this approach and it was initially used for federal waterway infrastructure to guide decisions on public works by weighing overall welfare. The idea is to translate diverse impacts—economic, environmental, social—into a common monetary measure so you can see which alternative produces more benefit than cost over time. This framing helps policymakers compare projects or policies on a shared basis, rather than relying solely on technical feasibility or private profitability. Net present value analysis is a related financial tool that focuses on discounting cash flows to assess profitability, but it doesn’t by itself capture broader social costs and benefits. Risk assessment centers on uncertainty about outcomes rather than a welfare comparison. Feasibility studies evaluate whether a project is practically doable, not how its overall benefits and costs stack up against alternatives.

Cost-benefit analysis compares the total expected costs and benefits of options to determine which yields the greatest net benefit to society. Jules Dupuit, a 19th‑century economist, first proposed this approach and it was initially used for federal waterway infrastructure to guide decisions on public works by weighing overall welfare. The idea is to translate diverse impacts—economic, environmental, social—into a common monetary measure so you can see which alternative produces more benefit than cost over time. This framing helps policymakers compare projects or policies on a shared basis, rather than relying solely on technical feasibility or private profitability.

Net present value analysis is a related financial tool that focuses on discounting cash flows to assess profitability, but it doesn’t by itself capture broader social costs and benefits. Risk assessment centers on uncertainty about outcomes rather than a welfare comparison. Feasibility studies evaluate whether a project is practically doable, not how its overall benefits and costs stack up against alternatives.