Which of the following statements concerning cost- benefit analysis is true?
A) Large potential benefits,regardless of their time horizon,always justify government intervention.
B) Large potential costs,regardless of their time horizon,always preclude government intervention.
C) Though benefits from a government policy can be accurately measured,costs are usually impossible to quantify.
D) Though it is often difficult to estimate costs and benefits with precision,cost- benefit analysis can be useful in determining whether to implement a given government policy.
E) Cost- benefit analysis can be used effectively by private firms but should not be used in the public sector.
Correct Answer:
Verified
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