Cost-beneﬁt analysis attempts to
A) compare the real worth, rather than the market values, of various goods and services.
B) compare the relative desirability of alternative distributions of income.
C) determine whether it is better to cut government expenditures or reduce taxes.
D) compare the beneﬁts and costs associated with any economic project or activity.

Question

Quizplus · Accepted Answer

Cost-benefit analysis is a technique used to compare the costs and benefits associated with any economic project or activity. It involves comparing the total expected costs of the project with the total expected benefits, in order to determine whether the benefits outweigh the costs and hence whether the project is worth undertaking. Therefore, choice D is the correct answer.

Cost-Beneﬁt Analysis Attempts to