In cost-benefit analysis associated with public projects, all costs and benefits should be evaluated in terms of
A)market values.
B)social values.
C)marginal willingness to pay.
D)market supply and demand.
E)profitability.

Question

Quizplus · Accepted Answer

Social values are the most appropriate measure of costs and benefits in cost-benefit analysis associated with public projects because they take into account the full range of impacts on society, including both market and non-market effects.

In Cost-Benefit Analysis Associated with Public Projects, All Costs and Benefits