Welfare weights should:
A) be used with caution so that they do not become arbitrary.
B) never be used because they are unreliable.
C) be used for every project because they are as reliable as the discount rate.
D) only be used for small projects.

Question

Quizplus · Accepted Answer

Welfare weights should be used with caution so that they do not become arbitrary. Although they can be valuable in evaluating the impacts of a project on different stakeholders, their use should be transparent and considered in the context of other factors. Blindly relying on welfare weights without considering other important factors could lead to biased decision-making.

Welfare Weights Should