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