From the following data, calculate the ( a ) conventional and ( b ) modifi ed benefi t/cost ratios using an interest rate of 6% per year and an infi nite project period. To the People To the Government Benefi ts: $300,000 now and $100,000 per year thereafter Costs: $1.5 million now and $200,000 three years from now Disbenefi ts: $40,000 per year Savings: $70,000 per year

Value economics capital scarcity opportunity cost wealth labor trade-offs standard of living good a. condition of not having enough resources to produce all the things people want b. alternative choices made by consumers in the marketplace c. sum of those economic products that are tangible, scarce, useful, and transferable d. tools, equipment, machinery, and factories used in the production of goods and services e. tangible item that is economically useful or that satisfies an economic want f. quality of life based on the ownership of the necessities and luxuries that make life easier g. people with all their efforts, abilities, and skills h. cost of the next-best alternative use of money, time, or resources when one choice is made rather than another i. study of how people try to satisfy their needs through the careful use of scarce resources j. worth that can be expressed in dollars and cents