Cost-benefit analysis

Question

Quizplus · Accepted Answer

Cost-benefit analysis suggests that an activity should be expanded if it yields greater marginal benefits than costs. This can be applied not only to economic choices but to a variety of decisions, including those in the fields of public policy, healthcare, and environmental management. Cost-benefit analysis does not correct GDP numbers for inflation, nor does it necessarily suggest that an activity should be expended if MSC > MSB (although this may be a factor).

Cost-Benefit Analysis