Why is cost-benefit analysis important in determining the role of government in our economy
A)Cost-benefit analysis helps government identify all goods in which benefits exceed costs.
B)Cost-benefit analysis identifies the possible gains to society from government provision of a particular good.
C)Cost-benefit analysis identifies the private good markets from the public good markets.
D)Cost-benefit analysis identifies market failure.

Question

Quizplus · Accepted Answer

Cost-benefit analysis helps determine if the benefits of government intervention in providing a particular good outweigh the costs, thus justifying the role of government in the economy.

Why Is Cost-Benefit Analysis Important in Determining the Role of Government