Which of the Following Is True of Benefit-Cost Analysis

question 34

Multiple Choice

Which of the following is true of benefit-cost analysis?

• A)Benefit-cost analysis will typically eliminate projects whose costs and benefits stretch over an indefinite period of time.
• B)The main focus of benefit-cost analysis is the equal distribution of costs and benefits across society.
• C)Since benefit-cost analysis does not include the use of market prices,the results are not efficient.
• D)Benefit-cost analysis is a method used by the government to maximize its profit from public projects.
• E)For a given project,benefit-cost analysis identifies all impacts on all affected members of a society.

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Definitions:

Contingency Planning

The process of developing strategies to address possible future events or circumstances that could negatively impact operations.

Alternative Courses

Different paths or strategies that can be pursued to achieve a specific goal or resolve a problem.

Changing Circumstances

Situations that evolve over time, necessitating adjustments in strategy, plans, or behavior.

Forecasting

The process of attempting to predict the future.