The Criticism That Benefit-Cost Analysis Does Not Reflect Distributional or Equity

question 1

Multiple Choice

The criticism that benefit-cost analysis does not reflect distributional or equity considerations:

• A)implies that the analysis is of little value when benefits are inequitably distributed.
• B)is not valid as benefit-cost analysis is focused on equity and not efficiency.
• C)is addressed by using the tax and redistribution systems to address economic inequities.
• D)holds that equity is more important than efficiency in a market economy.
• E)implies that benefit-cost analysis should not be used to analyze public programs.

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Definitions:

Floating GAAP

Generally Accepted Accounting Principles that are adaptable and can change over time with financial reporting standards.

Regulatory Accounting

Accounting practices and policies that are guided by regulatory bodies to ensure transparency, accuracy, and compliance in financial reporting.

Conflicts of Interest

Situations where a person's private interests might interfere with their professional duties or responsibilities.

Mutual Expectations

This term describes the shared, understood obligations or beliefs about future actions between two or more parties in a relationship or agreement.