Net benefits of an alternative equal ________.
A) benefits minus costs
B) benefits divided by costs
C) the sum of benefits and costs
D) the product of benefits and costs

Question

Quizplus · Accepted Answer

The net benefits of an alternative refer to the difference between the benefits and costs associated with that alternative. Therefore, option A, which defines net benefits as benefits minus costs, is the correct answer. Option B, benefits divided by costs, gives us a ratio of benefits to costs, which is not the same thing as net benefits. Option C, the sum of benefits and costs, does not take into account the fact that costs can outweigh benefits, resulting in a negative net benefit. Option D, the product of benefits and costs, is even less appropriate because it would give us a measure of the total impact of an alternative, without regard for any balancing of costs and benefits.

Net Benefits of an Alternative Equal ________