Among the chief concerns about the use of benefit-cost analysis is that
A) monetizing the benefits of a policy proposal is difficult
B) identifying and estimating implicit costs is a major challenge
C) equity might not be achieved if, for example, costs are distributed unevenly
D) all of the above
E) none of the above

Question

Quizplus · Accepted Answer

Monetizing the benefits of a policy proposal can be a challenging task, as it involves placing a monetary value on intangible benefits such as improved health or increased safety. Identifying and estimating implicit costs can also be difficult, as these costs may not appear in traditional accounting systems or may be hidden. Additionally, when costs and benefits are distributed unevenly, there can be concerns about equity, as certain groups may disproportionately bear the costs or receive the benefits. Therefore, all of these concerns are valid and important to consider when using benefit-cost analysis.

Among the Chief Concerns About the Use of Benefit-Cost Analysis