Which of the following effects should not be considered in BCA?
A)direct benefits of the project
B)changes in opportunities as a result of the project
C)changes in income distribution
D)changes in supply and demand
E)changes in taxation

Question

Quizplus · Accepted Answer

Changes in taxation should not be considered in Benefit-Cost Analysis (BCA) because BCA focuses on the direct and indirect economic impacts of a project, not on the fiscal impacts or changes in government revenue.

Which of the Following Effects Should Not Be Considered in BCA