Question

1. Is there a “substantial” Benefit to a commuter in spending less time commuting because congestion on the road or rail or bus system has been improved?Hint: the person spends the same time at work so that work productivity is not impacted. A longer commute means less leisure time. 3/4 sentences

2. For the Auckland rail loop project the CBA analysis shows Benefits are 1.6 to 1.7 times Costs. Does this make this project an automatic winner for funding? 3/4 sentences

Answer 1

1. If the commuting time is reduced it is beneficial for the commuter as it will leave longer time for doing work and hence the work would be done in a more efficient way with less errors and good presentation or finishing. Also the stress would be reduced and longer leisure time would be available that will help in rejuvenation of mind and hence can generate better ideas.

2. A benefit cost ratio of 1.6-1.7, makes the project a winner for funding because when the benefits exceeds cost project is always worthy of investment because benefits obtained are far larger than the cost incurred. Hence it is beneficial for the society to invest in the Auckland rail loop project.