CTE Transportation Economics & Finance

Question 1

Which economic analysis method calculates the ratio of a project's benefits to its costs to evaluate feasibility?

Accepted Answer

Benefit-Cost Analysis (BCA)

Answer

Net Present Value (NPV)

Answer

Internal Rate of Return (IRR)

Answer

Life-Cycle Cost Analysis (LCCA)

Question 2

In transportation finance, what does the term 'obligated funds' mean?

Accepted Answer

Federal funds formally committed to a specific project

Answer

Funds reserved for future use

Answer

State matching funds already spent

Answer

Funds returned to the U.S. Treasury

Question 3

What discount rate concept is used in LCCA to convert future costs to present-day dollars?

Accepted Answer

Real discount rate

Answer

Inflation rate

Answer

Nominal interest rate

Answer

Weighted average cost of capital

Question 4

Which federal funding program is the largest source of highway capital investment in the United States?

Accepted Answer

National Highway Performance Program (NHPP)

Answer

CMAQ Program

Answer

Surface Transportation Block Grant (STBG)

Answer

Highway Safety Improvement Program (HSIP)

Question 5

What is the standard federal-aid matching ratio for most highway projects in the US?

Accepted Answer

80% federal / 20% state

Answer

50% federal / 50% state

Answer

70% federal / 30% state

Answer

90% federal / 10% state

Question 6

Which economic concept measures the reduction in vehicle operating costs, travel time savings, and crash reduction benefits attributable to a highway improvement?

Accepted Answer

User benefits

Answer

Consumer surplus

Answer

Producer surplus

Answer

Economic multiplier