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Which of the Following Is True of Benefit-Cost Analysis

Question 27

Multiple Choice

Which of the following is true of benefit-cost analysis?


A) Benefit-cost analysis will typically eliminate projects whose costs and benefits stretch over an indefinite period of time.
B) The main focus of benefit-cost analysis is the equal distribution of costs and benefits across society.
C) Since benefit-cost analysis does not include the use of market prices,the results are not efficient.
D) Benefit-cost analysis is a method used by the government to maximize its profit from public projects.
E) For a given project,benefit-cost analysis identifies all impacts on all affected members of a society.

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